US existing-home sales unexpectedly rise 1.5% in September

US existing-home sales increased 1.5% in September, beating expectations of a 0.8% decline, according to National Association of Realtors (NAR) data released on Tuesday.

Sales rose on a monthly basis in the South and West, remained unchanged in the Midwest and fell in the Northeast. All four regions recorded declines compared to last September.

Despite the seasonally adjusted monthly increase, August and September were the two weakest months for home sales this year, said NAR Chief Economist Lawrence Yun.

Recent increases in mortgage rates have reduced the number of buyers able to qualify for a home purchase, he added.

Rising housing inventory and longer selling times, meanwhile, are giving buyers greater negotiating power, according to Yun.

He said sellers need to set realistic expectations based on local market conditions and may need to offer price reductions or other incentives to attract buyers.

The existing-home sales report covers completed transactions involving single-family homes, condominiums and cooperatives.