NAR: Existing-Home Sales Grew 3.4% in October
(Image courtesy of NAR)
The National Association of Realtors, Chicago, released existing-home sales data for October, reporting sales grew 3.4% to a seasonally adjusted annual rate of 3.96 million.
Sales also are up 2.9% from October 2023–that’s the first year-over-year increase since July 2021.
“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.”
Molly Boesel, principal economist at CoreLogic, Irvine, Calif., said the housing market is on track for its worst year in more than a decade. “The good news is, there’s nowhere to go but up,” she added. “However, stubbornly high mortgage rates and strong home prices will continue to weigh down on the housing recovery. Any potential thaw in the housing market will likely happen only after the pending winter months.”
Total inventory was 1.37 million units, up 0.7% from September and 19.1% year-over-year. Unsold inventory is at a 4.2-month supply, down from 4.3 months in September but up notably from 3.6 months last year.
The median existing-home price was $407,200, up 4% from October 2023.
Properties were on the market for 29 days in October, up slightly from 28 days in September and more significantly from 23 days in October 2023.
First-time buyers completed 27% of the sales in October, up from 26% in September but down from 28% in October 2023.
Cash sales were 27% of all October transactions, down from 30% in September and 29% in October 2023.
Investors or second-home buyers purchased 17% of homes in the month, up from 16% in September and 15% last October.
Distressed sales were 2% of sales in October, unchanged from both September and year-over-year.
Existing single-family home sales were up 3.5% to a seasonally adjusted annual rate of 3.58 million in October with a median price of $412,200. Condo and co-op sales were up 2.7% to a seasonally adjusted annual rate of 380,000 and a median price of $360,300.
By region, in the Northeast, existing-home sales grew 2.2% in September to an annual rate of 470,000. That’s flat from October 2023. The median price in the region was $472,900, up 7.6% year-over-year.
In the Midwest, existing-home sales grew 6.7% in October to an annual rate of 950,000, up 1.1% from the prior year. The median price was $305,300, up 7.2% from October 2023.
In the South, sales climbed 2.9% from September to an annual rate of 1.77 million. That’s up 2.3% year-over-year. The median price was $361,200, up 0.9% from one year earlier.
In the West, existing-home sales grew by 1.3% to an annual rate of 770,000, up 8.5% from last year. The median price was $627,700, up 4.4% from last year.
