Existing home sales in October increased by 1.2% from September, according to the National Association of Realtors (NAR). Compared to one year earlier, sales were up 1.7%.
A total of 1.52 million units were part of October’s housing inventory, down 0.7% from the prior month and up 10.9% from one year earlier (1.37 million). Last month saw a 4.4-month supply of unsold inventory, down from 4.5 months in September and up from 4.1 months in October 2024.
The median existing home price for all housing types in October was $415,200, up 2.1% from one year ago ($406,800). This marked the 28th consecutive month of year-over-year price increases.
On a regional basis, month-over-month sales increased in the Midwest and South, were unchanged in the Northeast, and fell in the West. Year-over-year sales rose in the Northeast, Midwest and South, but decreased in the West.
“Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates,” said NAR Chief Economist Lawrence Yun. “First-time homebuyers are facing headwinds in the Northeast due to a lack of supply and in the West because of high home prices. First-time buyers fared better in the Midwest because of the plentiful supply of affordable houses and in the South because there is sufficient inventory.”
“Rents are decelerating which will reduce inflation and encourage the Federal Reserve to continue cutting rates and pulling back their quantitative tightening,” Yun added. “This will help bring more homebuyers into the market since the Fed rate has an indirect impact on mortgage rates.”
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