An “Open House” sign is posted near a single-family home for sale on August 22, 2025 in Pasadena, California.
Mario Tama | Getty Images
Pre-owned home sales rose 1.5% in September from August to a seasonally adjusted annualized rate of 4.06 million units, according to the National Association of Realtors. That’s slightly less than analysts expected, but it’s the highest pace in seven months.
Sales increased by 4.1% compared to September last year.
Regionally, on an annual basis, sales were strongest in the South and Northeast. Starting in August, sales were stronger in the West and actually declined slightly in the Midwest, the only region to see a monthly decline.
This count is based on closings, so people signing contracts likely in July and August, when mortgage rates were falling but weren’t as low as they are now. The average 30-year fixed rate started in July at 6.67% and is now at 6.17% according to Mortgage News Daily.
“As expected, lower mortgage rates are boosting home sales,” said Lawrence Yun, NAR chief economist. “Improving housing affordability also contributes to increased sales.”
Inventories continued to grow, up 14% from last year, reaching 1.55 million units for sale at the end of September. It’s still meager historically. At the current sales pace, there is a 4.6 month supply of homes for sale. A six-month supply is considered balanced between buyer and seller.
“Inventories are at a five-year high, although they remain below pre-Covid levels,” Yun added. “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, contributing to overall household wealth.”
The still limited supply continues to put pressure on prices. The median price of a home sold in September was $415,200, up 2.1% year over year and the 27th straight month of annual gains. Prices are 53% higher than pre-Covid levels.
Sales continue to see the largest gains at the high end of the market, likely due to greater supply at these levels. Sales of homes priced above $1 million increased 20% from the previous year, while sales of homes priced under $100,000 increased just under 3%.
First-time home buyers are making gains, likely due to lower mortgage rates. They represent 30% of sales for the month of September, compared to 26% the previous year.
About 30% of sales were made entirely in cash. Homes are staying on the market longer, an average of 33 days, compared to 28 a year ago.