U.S. existing-home sales increased for the second straight month in September, lifted by falling mortgage rates and growing inventory, according to the latest report from the National Association of REALTORS® (NAR). The 1.5% month-over-month gain brings the seasonally adjusted annual sales pace to 4.06 million units, marking a continued recovery in the housing market following a period of high interest rates and tight supply.

The average rate for a 30-year fixed mortgage fell to 6.35% in September, down from 6.59% in August. Although rates remain elevated compared to a year ago (6.18%), the recent decline helped spur more buyer activity.

The report highlights an increase in total housing inventory, which rose 1.3% from August and 14% from a year ago to 1.55 million units. This level matches a five-year high but continues to trail pre-pandemic figures. The market features a 4.6-month supply of unsold inventory, unchanged from August but up from 4.2 months in September 2024.

The median national sales price for existing homes climbed to $415,200, a 2.1% increase year-over-year, extending the streak of annual price gains to 27 months.

Sales gains were recorded in the Northeast, South, and West, while the Midwest saw a slight decline. Year-over-year, sales rose in all regions except the West, which remained flat. Regionally, the median sales prices varied:

• Northeast: Median price up 4.1% to $500,300; sales up 2.1% month-over-month and 4.3% year-over-year
• Midwest: Median price up 4.7% to $320,800; sales down 2.1% month-over-month but up 2.2% year-over-year
• South: Median price up 1.2% to $364,500; sales up 1.6% month-over-month and 6.9% year-over-year
• West: Median price up just 0.4% to $619,100; sales up 5.5% month-over-month and flat year-over-year

Properties spent a median of 33 days on the market, a slight increase over prior months and last year, indicating a slowing pace of transactions. First-time buyers made up 30% of purchases in September, rising from 26% a year earlier. Cash sales accounted for 30% of all transactions, consistent with last year but up from the previous month. Investor and second-home purchases dropped to 15%, down from 21% in August. Distressed sales remained very low, holding at 2% of total transactions.