Existing Home Sales Rebound in September

Wells Fargo Research Team Wells Fargo

Beating expectations and reflecting improvement in all four regions of the country, existing home sales increased 3.2 percent in September. Inventory on the market remains low, thereby constraining sales.

First-Time Homebuyer Strength

Rebounding from a 1.5 percent decline in August, existing home sales rose to the second highest annualized sales pace this year at 5.47-million units. September's gain was driven by first-time homebuyers reaching a 34 percent share of total sales–a high not seen since July 2012.
Resales increased in all four regions, led by a 6.9 percent gain in the Northeast and a 4.8 percent rise in the West.

Inventory Remains Tight

Inventory on the market rose 1.5 percent to 2.04-million units, but a 4.5-month sales pace continues to reflect an extremely tight market. As such, home price appreciation remains solid, with prices up 5.6 percent over the past year.
Healthy buyer traffic, solid job growth, home price appreciation and low interest rates continue to point to steady home sales improvement in the coming year.

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