US existing-home sales rebounded in September from a dip in August to their highest pace of the year, the National Association of Realtors said Tuesday.
Though September sales were at the peak rate yet of 2014, compared with a year ago they were down 1.7 percent.Sales of used single-family homes increased 2.4 percent to an annual rate of 5.17 million units in September, up from 5.05 million the prior month, the NAR said.
"Low interest rates and price gains holding steady led to September's healthy increase, even with investor activity remaining on par with last month's marked decline,” said Lawrence Yun, NAR chief economist, in a statement.
Sales of single-family homes rose 2.0 percent, while condominium and co-op sales leaped 5.2 percent.
The median sales price for all types of existing homes was $209,700, up 5.6 percent from September 2013 and the 31st straight month of year-over-year gains.
Total inventory of homes on the market at the end of September fell 1.3 percent to 2.30 million, equivalent to a 5.3-month supply at the current sales pace.
Properties for sale were on the market in September longer, typically 56 days, than last month's 53 days and a year ago, 50 days.
"Traditional buyers are entering a less competitive market with fewer investors searching for available homes, but may also face a slight decline in choices due to the fact that inventory generally falls heading into the winter," Yun said.
The average 30-year mortgage interest rate rose slightly, to 4.16 percent in September from 4.12 percent in August, but remained well below the 4.49 percent rate a year ago, NAR said, citing data from mortgage-finance giant Freddie Mac.
Jennifer Lee of BMO Economics said the NAR report showed the US housing market was still improving.
"Overall, this is a positive report and we should continue to see housing receiving support from steady job growth, and reportedly easier credit requirements from Fannie and Freddie, even as higher borrowing costs are on the horizon," she said.
by Yahoo News
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