Existing-home sales rose 1.5% in September to a seasonally adjusted annual rate of 4.06 million, according to the National Association of Realtors (NAR). Sales were up 4.1% from a year ago, reaching their highest level in seven months. “As anticipated, falling mortgage rates are lifting home sales,” said Dr. Lawrence Yun, chief economist for the NAR. “Improving housing affordability is also contributing to the increase in sales.”

Inventory Matches a Five-Year High

Housing inventory increased 1.3% from August to 1.55 million units—the highest level in five years and 14% higher than a year ago. That equals a 4.6-month supply, unchanged from August but up from 4.2 months last year. “Inventory is matching a five-year high, though it remains below pre-COVID levels,” Yun noted. “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales.” While rising supply introduces more competition, inventory still falls short of the 5-6 months needed to be considered a balanced market.

Home Prices Hold Firm

The median existing-home price reached $415,200 in September, up 2.1% from one year ago and marking the 27th straight month of annual gains. “Home prices continue to rise in most parts of the country, further contributing to overall household wealth,” said Yun. Steady appreciation highlights ongoing demand amid limited supply.

Measured Buyer Activity

Homes typically remained on the market for 33 days in September, compared with 28 days a year earlier. First-time buyers made up 30% of sales—up from 28% in August and matching last year’s share. Cash purchases also accounted for 30% of transactions, while investors and second-home buyers represented 15%, down from 21% in August. Distressed sales remained minimal at just 2%.

Positioning for Success in a Shifting Market

With mortgage rates easing and inventory levels reaching multiyear highs, sellers this fall can benefit from renewed buyer interest and continued price stability before the typical year-end slowdown. Well-priced, move-in-ready homes continue to attract strong offers. Working with an experienced agent helps you price and market your home effectively in today’s changing market.

Regional Sales Snapshot

• Northeast: 490,000 existing-home sales (+2.1% MoM, +4.3% YoY) | Median Price: $500,300 (+4.1%)

• Midwest: 940,000 existing-home sales (–2.1% MoM, +2.2% YoY) | Median Price: $320,800 (+4.7%)

• South: 1.86 million existing-home sales (+1.6% MoM, +6.9% YoY) | Median Price: $364,500 (+1.2%)

• West: 770,000 existing-home sales (+5.5% MoM, 0% YoY) | Median Price: $619,100 (+0.4%)