Existing Home Sales Fall 9th Straight Month
October existing home sales fell—the ninth consecutive monthly decrease—the National Association of Realtors reported Friday.
The report said total existing-home sales (https://www.nar.realtor/existing-home-sales) fell by 5.9% from September to a seasonally adjusted annual rate of 4.43 million. Year-over-year, sales dropped by 28.4% from 6.19 million in October 2021.
Single-family home sales fell to a seasonally adjusted annual rate of 3.95 million in October, down 6.4% from 4.22 million in September and 28.2% from one year ago. The median existing single-family home price rose to $384,900 in October, up 6.2% from a year ago. Existing condominium and co-op sales fell to a seasonally adjusted annual rate of 480,000 units in October, down 2.0% from September and 30.4% from a year ago. The median existing condo price rose to $331,000 in October, an annual increase of 10.1%.
All four regions saw monthly and annual declines. In the South, sales declined 4.8% in October from September to an annual rate of 1,980,000 and fell by 27.2% from a year ago. The median price in the South rose to $346,300, an increase of 8.0% from one year ago. Sales in the West fell by 9.1% from September to an annual rate of 800,000 and fell by 37.5% from one year ago. The median price in the West rose to $588,400, a 5.3% increase from a year ago.
Sales in the Northeast fell by 6.6% from September to an annual rate of 570,000 and fell by 23.0% from a year ago. The median price in the Northeast rose to $408,700, an increase of 8.0% from the previous year. Sales in the Midwest fell by 5.3% from September to an annual rate of 1,080,000 and fell by 25.5% from the prior year. The median price in the Midwest rose to $274,500, up 5.9% from October 2021.
“The culprit behind the ongoing slump in resales continues to be higher mortgage rates,” said Charlie Dougherty, Economist with Wells Fargo Economics, Charlotte, N.C. “Elevated financing costs on top of the fast run-up in home prices over the past two years has crushed affordability and pushed many prospective buyers to the sidelines.”
“More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher,” said NAR Chief Economist Lawrence Yun. “The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years.”
The report said total housing inventory at the end of October fell to 1.22 million units, down 0.8% from both September and one year ago (1.23 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 3.1 months in September and 2.4 months a year ago.
The median existing-home price for all housing types in October rose to $379,100, a gain of 6.6% from October 2021 ($355,700), as prices rose in all regions. This marks 128 consecutive months of year-over-year increases, the longest-running streak on record.
Properties typically remained on the market for 21 days in October, up from 19 days in September and 18 days a year ago. Sixty-four percent of homes sold in October 2022 were on the market for less than a month. First-time buyers represented 28% of sales in October, down from 29% in both September and a year ago.
All-cash sales accounted for 26% of transactions in October, up from 22% in September and 24% a year ago. Individual investors or second-home buyers purchased 16% of homes in October, up from 15% in September, but down from 17% a year ago.
Distressed sales – foreclosures and short sales – represented 1% of sales in October, down from 2% in September but unchanged from a year ago.