Existing Home Sales fell 2% from August to September to a 3.96-million-unit annualized pace, reaching a 13-year low, per the National Association of REALTORS® (NAR). Sales were also 15.4% lower than they were in September of last year. This report measures closings on existing homes and is a critical gauge for taking the pulse of the housing sector. 

What’s the bottom line? Tight inventory and elevated mortgage rates remain key constraints on home sales. There were 1.13 million homes available for sale at the end of September, down from 1.23 million a year earlier and nearly half the levels seen in 2019. Plus, inventory is even tighter than that figure implies, as many homes counted in existing inventory are under contract and not truly available for purchase. In fact, there were only 702,000 “active listings” at the end of last month.

NAR’s Chief Economist, Lawrence Yun, noted that “there was a “pressing need for more housing supply.” Yet despite ongoing inventory constraints, homes continue to sell quickly (averaging just 21 days on the market). And 69% of homes sold in less than a month, showing that demand is strong for what’s out there.