Investing.com – U.S. existing home sales rose more than expected in September, bolstering optimism over the health of the housing market, according to a report released on Thursday by the National Association of Realtors (NAR).
The industry data showed that home resales increased 3.2% in September to a seasonally adjusted 5.47 million units from the 5.30 million units in August. The prior month’s data was revised from an initial reading of 5.33 million units.
The consensus forecast was for a 0.4% advance to 5.35 million units.
The data helps to gauge the strength of the U.S. housing market and is considered to be a key indicator of overall economic strength.
Furthermore, the report revealed that the median existing-home price for all housing types in September was $234,200, up 5.6% a year ago ($221,700).
September's price increase marks the 55th consecutive month of year-over-year gains, according to NAR.
NAR noted that the September reading was a strong rebound which was “propelled by sales from first-time buyers reaching a 34% share, which is a high not seen in over four years.”
Lawrence Yun, NAR chief economist, said the two-month slump in existing sales reversed course convincingly in September.
"The home search over the past several months for a lot of prospective buyers, and especially for first-time buyers, took longer than usual because of the competition for the minimal amount of homes for sale," he said.
Yun explained that most families and move-up buyers looked to close before the new school year starts.
“Their diminishing presence from the market towards the end of summer created more opportunities for aspiring first-time homeowners to buy last month, Yun"