Existing Home Sales Cool in September

Existing home sales took a mild monthly decline in September in all regions except the South, though sales rates remain well above 2011 levels. Home prices also improved, and inventories shrank in preparation for the colder, slower winter months.

Sales of existing homes fell in September fell 1.7 percent, to a seasonally adjusted annual rate of 4.75 million from an upwardly revised rate of 4.83 million in August. Declines were reported in all regions but the South, according to the National Association of Realtors report.

Though down for the month, sales are up 11 percent from the September 2011 rate.

The median existing-home price also gained 11.3 percent year-over-year to $183,900, the largest annual gain since November 2005.

Inventories declined to 2.32 million units in September, a 3.3 percent decline that represents 5.9 months of supply at the current sales rate. The decline in housing inventories is typical due to approaching winter months, though September’s reading is the first below six months since March 2006.