Existing-Home Sales Rise 1.5% in September as U.S. Housing Inventory Expands

Home Sales Improve as Inventory Grows

Existing-home sales in the United States increased 1.5% in September to a seasonally adjusted annual rate of 3.99 million, according to the National Association of Realtors. The report, released October 13, showed a modest improvement from August while highlighting continued challenges for buyers facing elevated borrowing costs and home prices.

Despite the monthly increase, sales were down 2.2% compared with the same period a year earlier. The median existing-home price rose 1.3% year over year to $417,500, while unsold inventory increased 1.9% to 1.60 million units.

The available inventory represented 4.8 months of supply at the prevailing sales pace. The figures point to a market where buyers have somewhat more choice, but affordability continues to constrain transactions.

For residential property professionals, the data provide an important snapshot of the relationship between inventory, financing costs and demand.

Inventory Gives Buyers More Options

Housing inventory is a central factor in determining how much negotiating power buyers and sellers hold. When more homes are available relative to the pace of sales, buyers may have additional opportunities to compare properties and negotiate terms.

The September increase brought unsold inventory to its highest level since November 2019, according to the report. However, inventory alone does not determine whether conditions favor buyers. Location, property type, price range and the number of competing offers all influence individual transactions.

Some homes may sell quickly when priced appropriately, while others can remain on the market as sellers adjust expectations. Properties that require substantial repairs or are listed above comparable values may face different conditions from move-in-ready homes in areas with limited supply.

The report also showed that sales increased in the South and West month over month, remained steady in the Midwest and declined in the Northeast. That regional variation demonstrates why national figures cannot fully describe the conditions facing a particular neighborhood.

For Realtors and property managers, local data remain essential when advising clients, evaluating demand and understanding how long properties may take to sell.

Mortgage Costs Continue to Affect Demand

Mortgage rates remained a significant influence on the housing market. The Associated Press reported that the average 30-year mortgage rate had reached 7.4% in the preceding week, its highest level in nearly three years.

Higher borrowing costs increase the monthly payment required to finance a home, potentially reducing the number of buyers who can qualify for a mortgage or comfortably afford a purchase.

The effect is especially important when prices remain elevated. Even a household with stable income may face a substantial difference in affordability when mortgage rates rise.

Some potential buyers may delay purchasing, continue renting or look for less expensive properties. Others may proceed because of household changes, employment requirements or the need for additional space.

The interaction between mortgage costs and home prices also affects sellers. Homeowners who secured lower rates on existing mortgages may be reluctant to move if doing so would require financing a new property at a substantially higher rate.

Prices Remain Elevated

The median existing-home price of $417,500 represented a 1.3% annual increase, extending a lengthy period of year-over-year price growth.

A rising median price does not necessarily mean every home has become more expensive. The median can change according to the types of properties sold, their locations and their price ranges. Nevertheless, the figure provides a useful measure of the cost of completed transactions.

For buyers, prices and borrowing costs together determine affordability. For sellers, market value depends on comparable sales, property condition and local demand rather than the national median alone.

The report also indicated that roughly 21% of listings had reduced their initial asking prices, according to the Associated Press. That suggests some sellers were adjusting expectations as homes remained on the market.

Implications for the Residential Market

The September figures show a market with slightly stronger monthly sales and increasing inventory, but they do not establish a broad recovery. Annual sales remained lower, prices continued rising and mortgage costs remained a significant barrier for many households.

For buyers, greater inventory can create more opportunities to compare homes, although financing remains a key constraint. Sellers may need to pay closer attention to pricing and local competition.

For Realtors, the regional differences reinforce the importance of market-specific information when helping clients evaluate transactions.

The report's broader message is that housing demand remains sensitive to financing costs and affordability. A monthly increase in sales can occur even while the market faces substantial structural challenges.

As the market evolves, inventory, mortgage rates and local price trends will remain important indicators for buyers, sellers and residential professionals assessing their next decisions.