Existing-Home Sales Edge Up in September as Inventory Reaches Its Highest Level Since 2019

Franklin, Tenn. — October 14, 2026

Existing-home sales rose slightly in September, but the market remained one of the slowest of the year as higher mortgage rates thinned the pool of qualified buyers, according to the National Association of Realtors.

Existing-home sales increased 1.5% from August to a seasonally adjusted annual rate of 3.99 million, NAR reported Tuesday, and were 2.2% below the pace of September 2025. Economists polled by Reuters had expected sales to slip to a 3.95 million rate. Sales declined from a year earlier in all four regions of the country.

"Despite the small monthly gain on a seasonally adjusted basis, August and September marked the two slowest months for home sales this year," said Lawrence Yun, NAR's chief economist. "Further increases in mortgage rates in recent weeks mean fewer buyers can qualify to purchase a home."

Existing-home sales and inventory: highest supply since 2019

The supply of homes for sale continued to build. Total inventory rose 1.9% from August to 1.60 million units, up 4.6% from a year earlier and the highest level since November 2019, according to Reuters. That equaled a 4.8-month supply at the current sales pace, unchanged from August and up from 4.5 months a year earlier. The median home spent 33 days on the market, up from 31 days in August.

Home prices and the South

Prices held up, though gains have slowed. The national median existing-home price was $417,500, up 1.3% from $412,300 a year earlier, the 39th consecutive month of annual increases and the highest median for any September, Reuters reported. The median single-family price was $422,700.

The South, which includes Tennessee, accounted for nearly half of all sales. Sales in the region rose 2.8% from August to an annual rate of 1.86 million and were 0.5% below a year earlier. The South's median price was $361,000, up just 0.2% from September 2025, the smallest increase among the three regions where prices rose. Prices in the West slipped 0.3%. NAR's housing affordability index fell to 105.4 from 106.7 a year earlier, with affordability declining 0.4% in the South.

First-time and cash buyers

The makeup of buyers shifted. First-time buyers accounted for 31% of sales, up from 30% in August and a year earlier, though still below the roughly 40% share associated with a robust housing market, Reuters noted. All-cash purchases made up 27% of transactions, down from 30% a year earlier, while individual investors and second-home buyers rose to 20% of sales from 15%. Distressed sales held at 2%.

What rates mean for buyers

Because existing-home sales are counted at closing, September's figures largely reflect contracts signed in July and August. Freddie Mac's 30-year fixed rate averaged 6.86% in September, up from 6.67% in August and 6.35% a year earlier, according to NAR, and the weekly average reached 7.40% on Oct. 8. Realtor.com economists said they expect home sales to remain below year-ago levels for the rest of 2026 as rates stay high.

For buyers who can qualify at current rates, the report points to more room to negotiate. "Higher inventory and lengthening days on market give buyers improved negotiating power," Yun said. "Home sellers need to be realistic about local market conditions, which could require price discounts and other incentives to attract buyers."

Sources

• National Association of Realtors, "Existing-Home Sales Increased 1.5% in September, According to NAR Report," Oct. 13, 2026: https://www.nar.realtor/newsroom/existing-home-sales-increased-1-5-in-september-according-to-nar-report
• Reuters via U.S. News & World Report, "US Existing Home Sales Rise in September; Higher Mortgage Rates Dim Outlook," Oct. 13, 2026: https://money.usnews.com/investing/news/articles/2026-10-13/us-existing-home-sales-rise-in-september-higher-mortgage-rates-dim-outlook
• Realtor.com Economic Research, "Existing Home Sales Point to a Slow Market Despite Uptick," Oct. 13, 2026: https://www.realtor.com/research/existing-home-sales-september-2026/
• Freddie Mac, Primary Mortgage Market Survey, Oct. 8, 2026: https://www.freddiemac.com/pmms