Existing Home Sales Record a Modest Recovery

Existing home sales in the United States increased by 1.5% in September 2026, recovering slightly from the two-year low recorded in August. Sales reached a seasonally adjusted annualized rate of 3.99 million units, compared with 3.93 million in the previous month. The result modestly exceeded market expectations of 3.95 million units.

Despite the improvement, the housing market remains weak. August and September were the two slowest months for existing home sales this year, according to National Association of Realtors (NAR) Chief Economist Lawrence Yun. The latest figures suggest that the monthly increase has not yet translated into a sustained recovery in housing demand.

Historical data show that U.S. existing home sales averaged approximately 4.06 million units between 1968 and 2026. The market reached a reported record high of 7.25 million units in September 2005 and a record low of 1.37 million in March 1970, illustrating the substantial variation in housing activity over time.

Housing Inventory Increases as Buyers Face Constraints

Total housing inventory rose 1.9% from August to 1.6 million units in September. At the prevailing sales rate, the available supply represented 4.8 months of inventory.

The increase provides prospective buyers with additional options, but improved availability has not been sufficient to generate a stronger recovery in transactions. High home prices and rising financing costs continue to make purchases difficult for many households.

Mortgage rates remain a central concern. Yun warned that further increases in rates in recent weeks mean fewer prospective buyers can qualify for a home purchase. Higher borrowing costs can increase monthly payments and reduce the purchasing power of households seeking mortgage financing.

Regional Housing Performance Remains Uneven

Sales performance differed across the country’s major regions in September.

The South recorded a 2.8% increase to an annualized rate of 1.86 million units. The West also gained 2.8%, reaching 0.73 million units.

In contrast, the Northeast experienced a 2.1% decline to 0.47 million units, while the Midwest remained unchanged at 0.93 million units.

The regional figures indicate that the national increase was supported by gains in the South and West rather than a broad-based recovery across the country. Continued differences in regional activity will be important to monitor as housing-market conditions evolve.

Housing Outlook Remains Cautious Through Year-End

The September improvement offers a limited positive signal, but the broader outlook remains challenging. Sales are still near their lowest levels this year, while rising mortgage rates and high prices threaten to restrain demand through the end of 2026.

Market participants will be watching mortgage-rate movements, inventory levels and upcoming sales reports for signs that affordability is improving and buyers are returning. A sustained recovery will likely require more favorable financing conditions and stronger purchasing capacity.