Sales of previously owned homes unexpectedly dropped 1% in September, reaching an annual rate of 3.84 million, the lowest pace since 2010.

This represents a 3.5% decline from last year, according to the National Association of Realtors (NAR).

Meanwhile, the median sales price rose 3% from September 2023 to $404,500, marking 15 consecutive months of price increases.

Inventory of unsold homes increased by 1.5% to 1.39 million.

NAR chief economist Lawrence Yun noted that, despite being stuck at around a four-million-unit pace for a year, factors like more inventory and lower mortgage rates could stimulate sales, Fox Business has reported.

However, affordability challenges due to rising mortgage rates and high home prices are making home purchases difficult for many Americans.

Written by B.C. Begley