WASHINGTON — Sales of existing homes rose 4.7 percent in September to the second-highest pace in eight years, as continued low interest rates and pent-up demand supported the housing recovery.
Existing-home sales rose in September from August to a seasonally adjusted annual rate of 5.55 million, the National Association of Realtors said Thursday. It was the fourth month of gains in the past five months.
Economists surveyed by The Wall Street Journal had expected a rise of 1.7 percent to 5.4 million.
September’s rise follows a sharp drop in August, which came on the heels of three straight months of gains. August’s sales were revised down to 5.3 million from an initial estimate of 5.31 million.
The national median home price was $221,900 in September, up 6.1 percent from Sept. 2014.
The housing market has been relatively robust in many markets across the country. Prices have risen year-over-year for more than three years straight.
Inventory of existing homes for sale stood at 4.8 months’ worth of supply at the current pace of sales, down from 5.1 months’ worth in August.
Lawrence Yun, chief economist for the NAR, said the low inventory was less worrisome now in the softer fall and winter selling season, but could be an issue once the spring buying season rolls around.
“Come spring of next year, based on the current trend, we find we could be facing really tight inventory situation once the spring buying season returns, unless home builders really ramp up production,” Mr. Yun said.
Sales were up in all four regions of the country in September, with the biggest percentage increase in the Northeast. Existing-home sales rose 8.6 percent from August to an annual rate of 760,000, 11.8 percent above September a year ago.
The action was concentrated in single-family home sales, which rose 5.3 percent from August. The rate of sales of existing condominiums and co-ops was unchanged from August at 620,000, up 3.3 percent from a year-ago September.
Homes typically stayed on the market for 49 days in September, down from 56 days in September 2014, but up from 47 days in August. It also is 44 percent longer than the average period of 34 days in June, which was the shortest period since the NAR began tracking these figures in 2011.
“The constrained supply could potentially foster unsustainable price gains, which could temper demand—especially among first-time home buyers,” deputy chief U.S. macro strategist at TD Securities USA Millan Mulraine said.
U.S. home building rebounded in September after two straight months of declines, the Commerce Department said earlier this week, largely due to a sharp increase in construction of apartments and other multifamily housing. But home builders have reported labor shortages as many construction workers who lost jobs during the recession moved on to other industries or left the labor market altogether.
Sales of newly built homes rose 5.7 percent in August, according to a separate report from the Commerce Department. September’s data on new home sales will be released on Monday.
Whether the U.S. housing market can sustain its relatively robust activity in the face of global headwinds remains to be seen. The pace of job creation slowed in September, with employers adding just 142,000 jobs, and an average of 167,000 a month over the past three months. That three-month rate was the slowest pace since Feb. 2014.
Some factors remain supportive, such as a decision in September by the Federal Reserve not to raise short-term interest rates, which would have likely caused mortgage rates to rise. But wage gains have been muted over the recovery, despite steady job creation over the past six years. That makes it harder for potential buyers to save for a down payment on a home, especially in regions like the South and West, where home prices have risen fast over the past year.
News Corp, owner of The Wall Street Journal, also owns Move Inc., which operates a website and mobile products for the National Association of Realtors.
