Existing home sales fall to lowest level since 2010

foxbusiness.com:

Bahnsen Group managing partner David Bahnsen discusses market volatility and analyzes the real estate market on 'The Big Money Show.'

Sales of previously owned homes unexpectedly fell last month, slowing to a pace not seen since 2010, when the U.S. was still recovering from a housing market crash.

The National Association of Realtors (NAR) on Wednesday reported that existing home sales declined 1% in September from the prior month to a seasonally adjusted annual rate of 3.84 million, which is a 3.5% drop from one year ago. 

A sign is posted in front of a home for sale in San Rafael, California, on Aug. 7. (Justin Sullivan/Getty Images / Getty Images)

At the same time, the median sales price of existing homes jumped 3% from last September to $404,500, marking the 15th consecutive month of year-over-year price increases, the NAR said.

WHY MORTGAGE RATES ARE GOING UP DESPITE THE FED'S INTEREST RATE CUT

The inventory of unsold existing homes, which includes single-family homes, townhouses and condominiums, rose by 1.5% in September from the prior month to 1.39 million.

A «for sale» sign hangs in front of a house in Patchogue, New York, on June 1. (Steve Pfost/Newsday RM via Getty Images / Getty Images)

«Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,» said NAR chief economist Lawrence Yun. «There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy.»

HOME INSURANCE OPTIONS ARE SHRINKING AMIDST STATES WITH NATURAL DISASTERS

Yun added, «Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a