Redfin Finds Existing Home Sales Post Biggest Increase in Nearly Three Years

(Illustration courtesy of Redfin)

Existing home sales rose 1.6% month over month in October–the biggest gain since January 2022–to a seasonally adjusted annual rate of 4.17 million, according to Redfin, Seattle.

Redfin found that existing home sales climbed 1.7% year over year, which is the first annual increase since November 2021, and noted they are on track to finish the year slightly higher than they finished 2023 at 4.09 million.

Overall home sales, which include sales of both existing and newly built homes, also posted a notable increase, the report said. They rose 1.6% month over month and 3.4% year over year to the highest level in over a year and a half on a seasonally adjusted basis.

The median home sale price increased 5.2% year over year to $435,313 in October—the biggest annual gain in six months.

“Home sales jumped in October because mortgage rates had just hit the lowest level in two years, giving buyers more purchasing power,” Redfin said. “The Federal Reserve had also just made news by cutting its benchmark interest rate and outlining plans for future cuts.”

Redfin real estate agents reported some buyers entered the market because they assumed the Fed’s September 18 rate-cut decision would cause mortgage rates to plunge, “though by this point, most of the decline had already happened,” the report said.