by Year-over-year gain is first since July 2021, according to National Association of Realtors
WASHINGTON — Year-over-year existing home sales rose 2.9% in October, which is the first such increase since July 2021, according to the National Association of Realtors.
The NAR reported that existing home sales totaled 3.96 million in October, up from 3.85 million in October 2023. They also rose 3.4% from September.
The figures include the sales of single-family homes, townhomes, condominiums and co-ops. The NAR said that year-over-year sales were unchanged in the Northeast but rose in the South, the Midwest and the West. Sales from September improved in all four regions.
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” said NAR Chief Economist Lawrence Yun. “Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”
Single-family home sales rose to 3.58 million in October, up 4.1% from October 2023 and up 3.5% from September, while existing co-op and condominium sales were down 7.3% from October 2023 and up 2.7% from September.
The NAR said that the median existing home price rose to $407,2000, up 4% from $391,600 in October 2023, marking the 16th consecutive month of year-over-year sales increases. The inventory of existing homes on the market also rose .7% to 1.37 million, which the NAR said was the equivalent of 4.2 months supply at the current sale pace. This was up from 3.6 months in October 2023, but down from 4.3 months in September.
The median existing single-family home price was $412,200 in October, up 4.1% from October 2023, while the existing condo price was $36,300, up 1.6% from October 2023.
“The ongoing price gains mean increasing wealth for homeowners nationwide,” Yun said, while also noting that additional inventory and more home building activity should help moderate price increases next year.
By region, activity was as follows:
+ In the Northeast, existing home sales totaled 470,000, level with October 2023 but up 2.2% from September. The median existing home price in the region was $472,900, up $7.6% from October 2023.
+ In the Midwest, sales totaled 950,000, up 1.1% from October 2023 and up 6.7% from September. The median price was $305,300, up 7.2% from October 2023.
+ In the South, sales totaled 1.77 million, up 2.3% from last October and up 2.9% from September. The median price in the region was $361,200, up .9% from October 2023.
+ In the West, sales rose to 770,000, up 8.5% from last year and 1.3% from September. The median price was $627,700, up 4.4% from October 2023.
Other highlights of the report were as follows:
+ Homes remained on the market for about 29 days in October, up from 23 days in October 2023 and up from 28 days in September.
+ First-time homebuyers represented about 27% of sales in October, down from 28% in October 2023 but up from 26% in September.
+ Cash sales accounted for 27% of sales in October, down from 29% in October 2023 and down from 30% in September. Individual investors or second-home buyers that make up many cash sales purchased 17% of homes in October, up from 15% in October last year and up from 16% in September.
+ Distressed sales including foreclosures and short sales represented 2% of sales in October, level with last October and September.
+ Freddie Mac reported that the 30-year fixed rate mortgage averaged 6.78% as of Nov. 14, down from 7.44% in October 2023 and down from 6.79% a week prior.
