Existing home sales hit highest level in 2014
Existing home sales last month were the strongest this year, but remained below year-earlier levels for the 11th straight month, the National Association of Realtors said Tuesday.
Rebounding from an August dip, sales of previously owned homes in September rose to a seasonally adjusted annual rate of 5.17 million.
That was ahead of the 5.1 million rate forecast by economists surveyed by Action Economics.
"Traditional buyers are entering a less competitive market with fewer investors searching for available homes, but may also face a slight decline in choices due to the fact that inventory generally falls heading into the winter," said Lawrence Yun, the NAR's chief economist.
September's selling pace was 2.4% higher than August's but 1.7% below a year earlier. Except in the Midwest, sales improved in all regions compared with August.
Investors have been withdrawing from the home-buying market as prices rise and the supply of deeply discounted distressed properties falls. Individual investors bought 14% of homes last month, down from 19% a year earlier.
But first-time buyers continue to be a weak presence in the home-buying market, remaining at 29% for the third straight month. They've claimed less than a 30% share for 17 of the past 18 months, the Realtors association said.
The supply of houses for sale didn't keep up with the faster sales rate. Total inventory fell 1.3% at the end of the month to a 2.3 million homes for sale, a 5.3-month supply at September's sales pace. A six-month supply is considered a balanced market between buyers and sellers.
The median price for all housing types covered by the report — single-family homes, townhomes, condominiums and co-ops — was $209,700, 5.6% higher than in September 2013. For single-family homes, the median price was $210,300, up 5.9%.
Many economists say an improving economy and increasing job gains should eventually lead to a stronger housing market.
Average U.S. mortgage rates remain near all-time lows. Lenders' average rate on a fixed 30-year mortgage fell to 3.97% last week, slipping below 4% for the first time since June 2013, according to Freddie Mac's survey.