The NAR data show sales of existing home fell 2.0 percent in September to 3.96 million units at a seasonally adjusted annual rate after an unrevised 4.04 million units in the prior month. The September rate is close to the consensus of 3.90 million units in the Econoday survey of forecasters. Home resales are down 15.4 percent compared to a year ago.

NAR Chief Economist Lawrence Yun said,"As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales." He added,"For the third straight month, home prices are up from a year ago, confirming the pressing need for more housing supply."

Single-family home sales are down 1.9 percent to 3.53 million units in September and down 15.8 percent compared to a year ago. Sales of multi-unit homes are down 2.3 percent to 430,000 in September and down 12.2 percent from a year earlier.

The supply of homes available for sale edged up to 3.4 months' worth in September after 3.3 months in August and in September 2022. Supply remains thin as current mortgage holders who captured low rates prior to the fall of 2022 are not inclined to sell at present despite elevated home values. The median price for an existing home dipped 2.4 percent to $394,300 in September but was up 2.8 percent compared to a year ago. Competition for existing units is fierce.

The average number of days a home is listed is up to 21 days in September after 20 days in August and 19 days in September 2022. The small increase does not change the fact that homes are being snapped up quickly, at least for the more affordable price ranges. In September, 69 percent of homes were on the market less than one month compared to 72 percent in August.

The share of first-time home buyers is down to 27 percent in September after 29 percent in August and in September 2022. Rising mortgage rates are pricing some out of the market. The NAR said,"the annual share of first-time buyers was 26 percent, the lowest since NAR began tracking the data".

After August's 4.04 million annual rate, existing home sales in September are expected to decrease to a 3.90 million rate. The National Association of Realtors described August sales as stable, balanced between the effects of high mortgage rates and strength in the labor market.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.