An open house sign is posted near a single-family home for sale in Pasadena, California, on August 22, 2025.
Mario Tama | Getty Images
According to the National Association of Realtors, condo sales rose 1.5% in September from August to a seasonally adjusted annual rate of 4.06 million units. That's slightly less than analysts forecast, but the fastest pace in seven months.
Sales rose 4.1% compared to September last year.
Regionally, annual sales were strongest in the South and Northeast. Starting in August, sales were strongest in the West and actually fell slightly in the Midwest, the only region to see a monthly decline.
This count is based on contract signings, meaning people who likely signed contracts in July and August, when mortgage rates fell but were not as low as they are now. According to Mortgage News Daily, the average interest rate on 30-year fixed loans has been 6.67% since July and is now at 6.17%.
“As expected, falling mortgage rates are boosting home sales,” said Lawrence Yun, NAR chief economist. “Improving the affordability of housing also contributes to increasing sales.”
Inventory continued to increase, rising 14% year over year to 1.55 million units for sale at the end of September. This is still historically meager. At the current sales pace, there is 4.6 months of available homes for sale. A six-month supply is considered settled between buyer and seller.
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“Inventories hit a five-year high but remain below pre-Covid levels,” Yun added. “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Real estate prices continue to rise in most parts of the country, further contributing to overall household wealth.”
The still tight supply continues to put pressure on prices. The average price of a home sold in September was $415,200, up 2.1% from a year ago and the 27th consecutive month of year-over-year gains. Prices are 53% above pre-Corona levels.
Sales continue to see the largest gains at the high end of the market, likely due to greater offerings in these categories. Sales of homes priced over $1 million increased 20% from a year ago, while sales of homes priced under $100,000 increased nearly 3%.
First-time home buyers are making some gains, likely due to falling mortgage rates. They accounted for 30% of September sales, up from 26% a year ago.
About 30% of sales were made entirely in cash. Homes are staying on the market longer, an average of 33 days, up from 28 days a year ago.