Existing-home sales retract in October
Limited inventory and high mortgage rates continue to haunt existing-home buyers.
Existing-home sales declined 4.1% in October to a seasonally adjusted annual rate of 3.79 million, the National Association of Realtors (NAR) reported this morning.
On a year-over-year, sales plunged 14.6% from 4.44 million in October 2022.
“Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation,” said NAR Chief Economist Lawrence Yun. “Multiple offers, however, are still occurring, especially on starter and mid-priced homes, even as price concessions are happening in the upper end of the market.”
Total housing inventory registered at the end of October was 1.15 million units, up 1.8% from September but down 5.7% from the level of 1.22 million units a year ago.
The median existing-home price for all housing types in October was $391,800, an increase of 3.4% from October 2022 and a price of $378,800. All four U.S. regions registered price increases.
“While circumstances for buyers remain tight, home sellers have done well as prices continue to rise year-over-year, including a new all-time high for the month of October,” Yun said. “In fact, a typical homeowner has accumulated more than $100,000 in housing wealth over the past three years.”
Single-family home sales declined to a seasonally adjusted annual rate of 3.38 million in October, down 4.2% from 3.53 million in September and 14.6% from the previous year.
The median existing single-family home price was $396,100 in October, up 3% from October 2022.
Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 410,000 units in October, down 2.4% from September and 14.6% from one year ago. The median existing condo price was $356,000 in October, up 7.6% from the prior year and a price of $331,000.
Unsold inventory sits at a 3.6-month supply at the current sales pace, up from 3.4 months in September and 3.3 months in October 2022.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.44% as of Nov. 16, down from 7.5% in the previous week but up from 6.61% on a year-over-year basis.
“Fortunately, mortgage rates have fallen for the third straight week, stirring up buying interest,” Yun added. “Though limited now, expect housing inventory to improve after this winter and heading into the spring. More inventory will result in more home sales.”
Here’s how existing-home sales performed on a regional basis:
- Existing-home sales in the Northeast dipped 4% from September to an annual rate of 480,000 in October, down 15.8% from October 2022. The median price in the Northeast was $439,200, up 7.5% from the previous year.
- Sales were flat in the Midwest but down 13.9% from one year ago. The median price in the Midwest was $285,100, up 4.2% from October 2022.
- In the South, existing-home sales retracted 7.1% from September to an annual rate of 1.69 million in October, a decline of 14.6% from the previous year. The median price in the South was $357,700, up 3.5% from last year.
- The West saw existing-home sales decreased 1.4% from the prior month to an annual rate of 690,000 in October, down 14.8% from one year ago. The median price in the West was $602,200, up 2.3% from October 2022.
