Existing home sales have fallen for the second consecutive month, reaching their lowest level in 14 years. According to the National Association of Realtors (NAR), the seasonally adjusted annual rate of existing home sales in September was 384,000, a 1.0% decrease from the previous month.

This is the lowest figure since October 2010, when the housing market was still struggling to recover from the 2008 crash. The September figure also fell short of the 390,000 homes projected by FactSet analysts. Compared to the same period last year, sales dropped by 3.5%.

In July, existing home sales increased for the first time in five months, but the trend reversed in August. High home prices are still deterring potential buyers, who are waiting for mortgage rates to decrease further.

By region, home sales decreased in the South, Midwest, and Northeast compared to both the previous month and the same time last year, while the West showed growth in both categories. The median price for existing homes in September reached $404,500, a 3.0% increase from the same time last year, marking a record high for September. This also extends the annual increase in home prices for the 15th consecutive month.

However, on a monthly basis, price growth has moderated for three consecutive months since July. Housing inventory rose by 1.5% from the previous month to 1.39 million homes, the highest level since October 2020. Inventory surged by 23% year-over-year in September.

At the current pace of sales, it would take 4.3 months to deplete the existing supply. The average time a home remained on the market was 28 days, longer than the 21 days recorded during the same period last year.

First-time homebuyers accounted for 26% of total purchases, slightly lower than last year’s 27%, and well below the 40% that experts believe is necessary for a healthy housing market.

NAR Chief Economist Lawrence Yun commented, "While home sales have stagnated around 4 million over the past year, factors encouraging sales are emerging, including an increase in available inventory, lower mortgage rates compared to a year ago, and improved employment."

He added, "However, some buyers may be waiting for mortgage rates to drop further or may be reluctant to make significant purchases ahead of the presidential election."

Mortgage rates, which had fallen to an average of 6.08% after the Federal Reserve's monetary easing in recent months, have recently risen again, reaching 6.44% last week, following strong economic data and uncertain prospects for further rate cuts.