From Fox Business
Existing home sales jumped much more than expected in September, the National Association of Realtors reported Friday, with the nation’s inventory of homes dropping to its lowest level in more than two years.
The industry group said existing home sales jumped 9.4% in September to a seasonally-adjusted rate of 5.57 million annualized units. It was much more than 5.35 million units economists had been expecting, according to estimates provided by Thomson Reuters.
“Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” said NAR’s Chief Economist Lawrence Yun in a statement.
Economists agreed that the jump in sales, while positive, may be partially related to the timing of the home-buyer tax credit, which is set to expire at the end of the year.
“As we close in on the end of the period in which one can successfully close on their home in time to qualify for the first time home buyers credit, a tick higher for the month is not surprising at all and entirely within reasonable expectation levels,” said Dan Greenhaus, with the brokerage house Miller Tabak.
The nation’s home inventory fell to 3.63 million existing homes available for sale, NAR said, representing a 7.8-month supply, down from a 9.3-month supply in August. Unsold inventory is 15% below a year ago.
Sales increased in all major tracked geographical divisions in the country. In the Northeast, sales rose 4.4%, up 11.8% from a year ago. The median price in the Northeast was $234,700, down 7% from a year ago.
In the Midwest, sales rose 9.6%, up 7.8% from a year ago. The median price in the Midwest was $147,600, down 1% from a year ago. In the South, existing-home sales rose 9%, up 10.8% from a year ago. The median price in the South was $153,500, down 7.6% from a year ago.
Existing-home sales in the West jumped 13%, at levels 5.7% higher than a year ago. The median price in the West was $219,000, which is 15.% below September 2008.
According to the NAR, first-time home buyers accounted for more than 45% of home sales during the past year and distressed (foreclosed) homes accounted for 29% of transactions in September.