U.S. existing home sales drop to a 14-year low, but prices remain high

U.S. home sales dropped 1.0% in September to an annual rate of 3.84 million, the lowest since October 2010.

Rising mortgage rates, which averaged 6.44% last week, and high home prices contributed to a second straight monthly decline in sales.

Home resales were down 3.5% compared to last year, with a 1.7% drop in the South, partly due to damage from Hurricane Helene in Florida.

Housing inventory increased by 1.5% to 1.39 million units, up 23.0% from last year but still below pre-pandemic levels of 1.8 million.

Even with more homes available, the median home price rose 3.0% from last year to $404,500, and 20% of homes sold for more than the asking price.

Most homes sold were priced between $250,000 and $500,000, with current inventory expected to last 4.3 months, the highest since May 2020.

Homes stayed on the market for an average of 28 days in September, and first-time buyers made up 26% of sales, slightly down from 27% last year.

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