Heartier Home Sales In September

After the 7% surge in September for existing-home sales and the slowing down of price increases for the fourth month in a row now mortgage experts are optimistic about the US housing sector.

According to the National Association of Realtors, compared to August the sales of previously owned homes rose 7% higher, leading to a seasonally adjusted annualized rate of 6.29 million units sold in September.

According to reports by Redfin, the online real estate brokerage, the bidding wars for properties were at a record low for 2021.

Because of the ongoing low inventory, Redfin pointed out that this time of year the homes were selling faster than usual.

Taylor Marr the deputy chief economist at Redfin said compared to that in the spring when competition in the housing market was on top the buyers were not having to offer as much above the asking price.

He also said that as mortgage rates were rising, the rate of bidding wars will slow down.

NAR’s chief economist, Lawrence Yun, said that the existing home sales surge is because of the drop in 30-year mortgage rate’s the previous month, which rose up again.

According to Mike Fratantoni, the senior vice president and chief economist at the Mortgage Bankers Association the rise in existing home sales in September was because of the contracts signed earlier.

Fratantoni expects a year-over-year increase in sales for used homes, whereas first-time homebuyers are still out of the market.

Low inventory is still constraining the market, but MBA forecasts a 7% increase for existing sales compared to 2020.

New home construction will also help support growing inventory levels predicts MBA.

Nerdwallet’s home and mortgage expert, Holden Lewis, said compared to last year the median price of a used home was 13.3% more.

According to CNBC, the sales of luxury homes were 30% higher, the home sales activity of newly built homes in August, were 24% lower, with prices for new homes up by 20%.