U.S. home sales soared to an eight-month high in September, as higher prices persisted, squeezing out first-time buyers from the housing market.
- Existing home sales expanded by 7.0% to a seasonally adjusted annual rate of 6.29 million units the previous month, the highest level since January.
- Home resales, which account for the bulk of U.S. home sales, declined 2.3% on a year-on-year basis.
- Demand for housing rose early in the COVID-19 pandemic amid an exit from cities to suburbs and other low-density locations as Americans were seeking more spacious accommodations for home offices and e-learning.
- The buying mania in the suburbs has slowed down as workers return to offices and schools reopened for in-person learning due to the COVID-19 vaccinations.
Even though house price growth appears to be cooling down, it remains strong. The average existing house price rose by 13.3% from a year ago to $352,800 in September.
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