by Sales also rise 1.2% from September, increasing in the Midwest and South, while falling in the West and remaining level in the Northeast
WASHINGTON — Existing home sales rose to 4.1 million in October, up 1.7% from October 2024 and up 1.2% from September, according to the National Association of Realtors.
The increase was the fourth straight year-over-year gain since July, falling below the 3.8% gain in September and slightly below the 1.8% gain in August but above the .8% gain in July.
The NAR report said that year-over-year sales rose in the Northeast, Midwest and South, and decreased in the West, while month-over-month sales increased in the Midwest and South, showed no change in the Northeast, and fell in the West.
Single-family home sales totaled 3.71 million, or 90.5% of the total, up 1.9% from October 2024 and up .8% from September. The median single-family home price was $420,600, up 2.2% from October 2024.
Condominium and co-op sales totaled 390,000, level with October 2024 and up 5.4% from September. The median price was $363,700, up .9% from October 2024.
“Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates,” said NAR Chief Economist Lawrence Yun. “First-time homebuyers are facing headwinds in the Northeast due to a lack of supply and in the West because of high home prices. First-time buyers fared better in the Midwest because of the plentiful supply of affordable houses and in the South because there is sufficient inventory.”
Citing Freddie Mac, the NAR said that the increase occurred as the 30-year fixed rate mortgage in October declined to 6.25%, compared with 6.43% in October 2024 and 6.35% in September.
“Rents are decelerating, which will reduce inflation and encourage the Federal Reserve to continue cutting rates and pulling back their quantitative tightening,” Yun said. “This will help bring more homebuyers into the market since the Fed rate has an indirect impact on mortgage rates.”
The decrease is encouraging people to buy homes even though prices continue to rise. The median existing home price was $415,200 for all housing types, up 2.1% from one year ago ($406,800), which the NAR said is the 28th consecutive month of year-over-year price increases.
However, the market appears to be favoring buyers as inventory levels continue to rise. Inventory was down .7% from September, but rose from 1.37 million in October 2024 to 1.52 million units in October. This equates to a 4.4-month supply of unsold inventory, down from 4.5 months in September but up from 4.1 months in October 2024.
By region the activity was as follows:
In the Northeast, sales totaled 490,000, up 4.3% from October 2024 and unchanged since September. The median price was $503,700, up 6.5% from October 2024.
In the Midwest, sales totaled 990,000, up 2.1% year over year and up 5.3% from September. The median home price was $319,500, up 4.6% from October 2024.
In the South, sales totaled 1.86 million, up 2.8% from October 2024 and up .5% from September. The median price was $362,300, up .3% from October 2024.
In the West, sales totaled 760,000, down 2.6% from October 2024 and down 1.3% from September. The median price was $628,500, up .1% from October 2024.
Other highlights of the report were as follows:
+ Properties were on the market for a median of 34 days, up from 29 days in October 2024 and up from 33 days in September.
+ 32% of sales were first-time homebuyers, up from 27% in October 2024 and up from 30% in September.
+ 29% of transactions were cash sales, up from 27% in October 2024 and down from 30% in September.
+ 16% of transactions were individual investors or second-home buyers, down from 17% in October 2024 and up from 15% in September.
+ 2% of sales were distressed sales including foreclosures and short sales, unchanged from October 2024 and unchanged from September.
The increase over the past four months is a positive for the furniture industry, which depends on the purchase of new and existing homes as a driver of furniture sales. The hope is that lower interest rates continue to fuel home purchases in the months ahead leading into 2026.
