Existing Home Sales - November Report
Last Updated: 10/30/2009

Home Sales Pace

According to the housing market, recovery is on the way. Sales of existing U.S. homes rose significantly in September over August figures, according to the National Association of Realtors, and that means sales have been on the upswing for five of the past six months.

"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 Lawrence Yun, NAR chief economist. "We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery."

Total sales jumped up 9.4 percent in September over the previous month, to a seasonally adjusted 5.57 million units. That also accounts for a 9.2 percent sales increase over the past 12 months.

The national median price for existing homes continued to fall, however, making three consecutive months of decline. The new median dropped to $174,900, down 8.5 percent from the previous year when it measured $191,200. In August, the median price was also higher at $177,300.

The NAR defines existing homes as all previously-owned single-family homes, townhouses, condominiums, and co-ops. The group "seasonally adjusts" the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc. to smooth out the trends. The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units that would be sold in one year if the current rate were to continue unchanged.

Sales Pace by Region

Sales were up across all regions in September with the West leading the way. There, sales of existing homes rocketed up 13.0 percent from the month before to 1.3 million units. Sales were also up 5.7 percent from the previous year.

The Midwest had the next strongest showing with a 9.6 percent monthly increase to 1.25 million units. In a year-over-year comparison, sales were up 7.8 percent.

In the South, sales rose 9.0 percent to 2.06 million homes, and increased 10.8 percent over September 2008 sales.

Sales in the Northeast climbed up to 950,000 units, a 4.4 percent increase over August, and an 11.8 percent jump from the year before.

Home Prices

The median home price, the point at which half of all homes are sold for more and half are sold for less, dipped in all areas of the U.S. in September. The median price in the West was down 15.1 percent over the previous year, falling to $219,000. The price in August was $219,800.

The South saw a yearly price decline of 7.6 percent to $153,300. The month before the price was $153,500.

The median price in the Northeast fell 7.0 percent over the past year, to $234,700, also down from $241,200 the previous month.

The Midwest experienced only a 1.0 percent drop in the median price since September 2008, but it was also down on a monthly basis to $147,600 from $149,300.

Inventory

Total housing inventory fell again in September to 3.63 million homes, down 7.5 percent from August and down 15.0 percent from one year earlier. At the current sales pace, there is a 7.8-month supply of homes on the market, a number lower than anything seen in the past year. That supply is down 16.1 percent from the previous month and 22.8 percent from September 2008.

"The current housing supply is the lowest we’ve seen in two and a half years," said Yun. "If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year."

Next Report

Data for October existing home sales, prices, and inventory will be available at the end of November.

Month-to-Month Appreciation Graphs, regional and nationwide - click here.