Existing-home sales, prices continue to rise

As we near the end of 2021, existing-home sales continue to demonstrate improvement while edging upward last month.

The National Association of Realtors reported today that existing-home sales increased in October. This marks two consecutive months of growth.

Total existing-home sales, which includes completed transactions of single-family homes, townhomes, condominiums, and co-ops, rose 0.8% from September to a seasonally adjusted annual rate of 6.34 million in October. 

But Sales fell 5.8% from a year ago and a rate of 6.73 million in October 2020.

Single-family home sales rose to a seasonally adjusted annual rate of 5.66 million in October, up 1.3% from 5.59 million in September and down 5.8% from one year ago. 

“Home sales remain resilient, despite low inventory and increasing affordability challenges,” said Lawrence Yun, NAR’s chief economist. “Inflationary pressures, such as fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.

At the close of October, the total housing inventory sat at 1.25 million units. This is a 0.8% decrease from September’s total and a 12% drop from 1.42 million units one year ago. Unsold inventory sits at a 2.4-month supply at the current sales pace, equal to September’s supply, and down from 2.5 months in October 2020.

Home prices are not letting up either. The median existing-home price for all housing types in October was $353,900, up 13.1% from October 2020 ($313,000), as prices climbed in each region. This marks 116 straight months of year-over-year increases, the longest-running streak on record.

The median existing single-family home price was $360,800 in October, up 13.5% from October 2020.

“Among some of the workforce, there is an ongoing trend of flexibility to work anywhere, and this has contributed to an increase in sales in some parts of the country,” said Yun. “Record-high stock markets and all-time high home prices have worked to significantly raise total consumer wealth and, when coupled with extended remote work flexibility, elevated housing demand in vacation regions.”

Properties typically remained on the market for 18 days in October, up from 17 days in September, and down from 21 days in October 2020. About 82% of homes sold in October 2021 were on the market for less than a month.

 Here’s how existing-home sales break down by region:

• Existing-home sales in the Northeast fell 2.6% in October, registering an annual rate of 750,000, a 13.8% decline from October 2020. The median price in the Northeast was $379,100, up 6.4% from one year ago.
• Existing-home sales in the Midwest rose 4.2% to an annual rate of 1,500,000 in October, a 6.3% decrease from a year ago. The median price in the Midwest was $259,800, a 7.8% jump from October 2020.
• Existing-home sales in the South increased 0.4% in October, posting an annual rate of 2,780,000, a 3.5% drop from one year ago. The median price in the South was $315,500, a 16.1% climb from one year prior.
• Existing-home sales in the West neither rose nor fell from the prior month’s level, registering an annual rate of 1,310,000 in October, down 5.1% from one year ago. The median price in the West was $507,200, up 7.7% from October 2020.