Existing-home sales rise in October
There was good news the day before Thanksgiving when it came to existing-home sales.
According to the latest report from the National Association of Realtors (NAR), existing-home sales increased in October after six straight months of decreases with 3 of the 4 major U.S. regions showing gains in the last month.
Total existing-home sales, including completed transactions of single-family homes, townhomes, condominiums and co-ops, increased 1.4% from September to a seasonally adjusted rate of 5.22 million in October. Sales are now down 5.1% from a year ago and the October 2017 rate of 5.5 million.
An increase in housing inventory is partly responsible for the October increase, the NAR said.
“After 6 consecutive months of decline, buyers are finally stepping back into the housing market,” said Lawrence Yun, chief economist of the NAR. “Gains in the Northeast, South and West – a reversal from last month’s steep decline or plateau in all regions – helped overall sales activity rise for the first time since March 2018.”
Single-family home sales are at a seasonally adjusted annual rate of 4.62 million in October, up from 4.58 million in September, and 5.3% below the 4.88 million sales pace from a year ago. The median existing single-family home price was $257,900 in October, up 4.3% from October 2017.
The median existing-home price for all housing types in October was $255,400, up 3.8% from the October 2017 price of $246,000. October’s price increase marks the 80th straight month of year-over-year gains.
Total housing inventory at the end of October decreased from 1.88 million in September to 1.85 million existing homes available for sale, but that represents an increase from 1.80 million a year ago, the NAR said. Unsold inventory is at a 4.3-month supply at the current sales pace, down from 4.4 last month and up from 3.9 months a year ago.
Properties typically stayed on the market for 33 days in October, up from 32 days in September but down from 34 days a year ago. About 46% of homes sold in October were on the market for less than a month.
“As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully,” said Yun. “This allows for much more manageable, less frenzied buying conditions.”
The hottest metro areas in October were Midland, Texas; Fort Wayne, Ind.; Odessa, Texas; Boston-Cambridge-Newton, Mass.; and Columbus, Ohio.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.83% in October from 4.63% in September. The average commitment rate for all of 2017 was 3.99%.
“Rising interest rates and increasing home prices continue to suppress the rate of first-time homebuyers. Home sales could further decline before stabilizing. The Federal Reserve should, therefore, re-evaluate its monetary policy of tightening credit, especially in light of softening inflationary pressures, to help ease the financial burden on potential first-time buyers and assure a slump in the market causes no lasting damage to the economy,” says Yun.
First-time buyers were responsible for 31% of sales in October, down from last month and a year ago rate of 32%.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 600,000 units in October, up 5.3% from last month but down 3.2% from a year ago. The median existing condo price was $236,200 in October, which is down 0.2% from a year ago.
October existing-home sales in the Northeast increased 1.5% to an annual rate of 690,000, 6.8% below a year ago. The median price in the Northeast was $280,900, which is up 3% from October 2017.
In the Midwest, existing-home sales declined 0.8% from last month to an annual rate of 1.27 million in October, down 3.1% overall from a year ago. The median price in the Midwest was $197,000, up 2.4% from last year.
Sales rose 1.9% in the South to an annual rate of 2.15 million in October, down 2.3% from last year. The median price in the South was $221,600, up 3.8% from a year ago.
Existing-home sales in the West grew 2.8% to an annual rate of 1.11 million in October, 11.2% below a year ago. The median price in the West was $382,900, up 1.9% from October 2017.
According to the latest report from the National Association of Realtors (NAR), existing-home sales increased in October after six straight months of decreases with 3 of the 4 major U.S. regions showing gains in the last month.
Total existing-home sales, including completed transactions of single-family homes, townhomes, condominiums and co-ops, increased 1.4% from September to a seasonally adjusted rate of 5.22 million in October. Sales are now down 5.1% from a year ago and the October 2017 rate of 5.5 million.
An increase in housing inventory is partly responsible for the October increase, the NAR said.
“After 6 consecutive months of decline, buyers are finally stepping back into the housing market,” said Lawrence Yun, chief economist of the NAR. “Gains in the Northeast, South and West – a reversal from last month’s steep decline or plateau in all regions – helped overall sales activity rise for the first time since March 2018.”
Single-family home sales are at a seasonally adjusted annual rate of 4.62 million in October, up from 4.58 million in September, and 5.3% below the 4.88 million sales pace from a year ago. The median existing single-family home price was $257,900 in October, up 4.3% from October 2017.
The median existing-home price for all housing types in October was $255,400, up 3.8% from the October 2017 price of $246,000. October’s price increase marks the 80th straight month of year-over-year gains.
Total housing inventory at the end of October decreased from 1.88 million in September to 1.85 million existing homes available for sale, but that represents an increase from 1.80 million a year ago, the NAR said. Unsold inventory is at a 4.3-month supply at the current sales pace, down from 4.4 last month and up from 3.9 months a year ago.
Properties typically stayed on the market for 33 days in October, up from 32 days in September but down from 34 days a year ago. About 46% of homes sold in October were on the market for less than a month.
“As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully,” said Yun. “This allows for much more manageable, less frenzied buying conditions.”
The hottest metro areas in October were Midland, Texas; Fort Wayne, Ind.; Odessa, Texas; Boston-Cambridge-Newton, Mass.; and Columbus, Ohio.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.83% in October from 4.63% in September. The average commitment rate for all of 2017 was 3.99%.
“Rising interest rates and increasing home prices continue to suppress the rate of first-time homebuyers. Home sales could further decline before stabilizing. The Federal Reserve should, therefore, re-evaluate its monetary policy of tightening credit, especially in light of softening inflationary pressures, to help ease the financial burden on potential first-time buyers and assure a slump in the market causes no lasting damage to the economy,” says Yun.
First-time buyers were responsible for 31% of sales in October, down from last month and a year ago rate of 32%.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 600,000 units in October, up 5.3% from last month but down 3.2% from a year ago. The median existing condo price was $236,200 in October, which is down 0.2% from a year ago.
October existing-home sales in the Northeast increased 1.5% to an annual rate of 690,000, 6.8% below a year ago. The median price in the Northeast was $280,900, which is up 3% from October 2017.
In the Midwest, existing-home sales declined 0.8% from last month to an annual rate of 1.27 million in October, down 3.1% overall from a year ago. The median price in the Midwest was $197,000, up 2.4% from last year.
Sales rose 1.9% in the South to an annual rate of 2.15 million in October, down 2.3% from last year. The median price in the South was $221,600, up 3.8% from a year ago.
Existing-home sales in the West grew 2.8% to an annual rate of 1.11 million in October, 11.2% below a year ago. The median price in the West was $382,900, up 1.9% from October 2017.