Existing-Home Sales Rose 1.5% in September, NAR Reports

Existing-home sales rose 1.5% from August to September, the National Association of Realtors reported on October 13 from Washington, DC. The small monthly gain sat on top of the year's slowest sales stretch.

The trade group's Existing-Home Sales report put September down 2.2% year-over-year. The split between four regions tells the rest of the story, with the Northeast absorbing the worst of the month-over-month slip.

From August to September, sales climbed in the South and West, held steady in the Midwest, and slipped in the Northeast. Compared with a year earlier, every region finished lower. No part of the country ran ahead of 2025.

NAR Chief Economist Lawrence Yun read the September uptick as thin cover. "Despite the small monthly gain on a seasonally adjusted basis, August and September marked the two slowest months for home sales this year," Yun said. "Further increases in mortgage rates in recent weeks mean fewer buyers can qualify to purchase a home."

Where the four regions finished

• South: month-over-month gain; year-over-year decline
• West: month-over-month gain; year-over-year decline
• Midwest: month-over-month flat; year-over-year decline
• Northeast: month-over-month decline; year-over-year decline

Yun turned to the supply side next. "Higher inventory and lengthening days on market give buyers improved negotiating power," he said. "Home sellers need to be realistic about local market conditions, which could require price discounts and other incentives to attract buyers."

What does this change for buyers and sellers?

For buyers, the math eased this fall. More listings sit on the market each week. Homes linger longer before contracts get signed. That combination gives shoppers more room to push back on asking price, request repairs, or negotiate closing-cost credits from the seller.

For sellers, Yun's warning lands plain. Pricing for last year's market leaves a house sitting through the holidays. Discounts, rate buydowns, and inspection credits now shape who actually closes.

What's the mortgage angle doing to deal flow?

When weekly mortgage rates tick higher, fewer households clear lender qualification thresholds. The pool of qualified buyers narrows. Architects, developers, and builders tracking pre-sale pipelines should expect more projects to re-price through the rest of 2026, with absorption timelines stretching past what spring proformas assumed.

Yun's two-track diagnosis — soft demand paired with rising inventory — sets up a fall where motivated sellers cut prices while qualified buyers find the most leverage they've had in months.

The architecture and development side of the market reads the same signal. Hold pricing assumptions loosely, plan for longer sell-through, and watch the weekly rate print more closely than listing traffic.

Through the rest of 2026, sellers who refuse to adjust to local conditions will sit on listings while qualified buyers wait out the next mortgage-rate move.