(Kitco News) - Gold prices are trading at fresh session lows after the latest data showed the U.S. housing market declining less than expected in September.
Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, fell 1.0% to a seasonally adjusted annual rate of 3.84 million in September, the National Association of Realtors (NAR) announced on Wednesday. The data was better than expected, as the consensus forecast of economists called for a 1.3% drop to 3.80 million. August’s total was revised upward to 3.88 million from the originally reported 3.86 million units. Year-over-year, sales were down 3.5% from September 2023.
Gold prices fell to a new session low of $2,726.01 in the minutes after the housing data was released, and last traded at $2,727.96 for a loss of 0.76% on the day at the time of writing.
“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” said NAR Chief Economist Lawrence Yun. “There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy.”
The report noted that existing-home sales fell month-over-month and year-over-year in the South, Midwest, and Northeast in September, but sales rose in the West.
Total housing inventory stood at 1.39 million units at the end of September, up 1.5% from August and 23.0% from the 1.13 million posted one year ago. Unsold inventory sits at a 4.3-month supply at the current sales pace, up from 4.2 months in August and 3.4 months in September 2023.
“More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun said. “However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low. Distressed property sales accounted for only 2% of all transactions in September.”
The median existing-home price for all housing types in September was $404,500, up 3.0% from $392,700 one year ago. All four U.S. regions registered price increases.
“Moderating home price increases are welcome news for home buyers,” Yun added. “With wage growth now outpacing home price appreciation, housing affordability will improve.”
