Demand from home buyers has outstripped supply for more than a year.
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U.S. home sales surged in September as demand remained strong, but sky-high prices made it more difficult for first-time buyers to compete.
Existing-home sales rose 7% in September from the prior month to a seasonally adjusted annual rate of 6.29 million, the highest pace since January, the National Association of Realtors said Thursday. September sales fell 2.3% from a year earlier.
Demand from home buyers has outstripped supply for more than a year. Low mortgage-interest rates and a desire for more space to work from home have prompted buyers to enter the market, but they are competing for a limited number of homes for sale.
Mortgages rates slid in July and remained low in August, spurring fresh demand from home buyers, said Lawrence Yun, NAR’s chief economist. Homes typically go under contract a month or two before the contract closes, so the September figures largely reflect purchase decisions made in August or July.
The competition among buyers has pushed home prices sharply higher and priced some people out of the market.
“This autumn season looks to be one of the best autumn home-sale seasons in 15 years,” Mr. Yun said. However, “price increases are squeezing out the first-time buyers.”
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