Existing home sales recorded its first year-over-year upswing since July 2021, according to new data from the National Association of Realtors (NAR).
Total existing-home sales were up 3.4% from September to a seasonally adjusted annual rate of 3.96 million in October. Year-over-year, sales rose by 2.9% from 3.85 million in October 2023. Year-over-year, sales elevated in three of the nation’s major regions and were unchanged in the Northeast.
Total housing inventory registered 1.37 million units last month, up 0.7% from September and up 19.1% from 1.15 million in October 2023. Unsold inventory sits at a 4.2-month supply at the current sales pace, down from 4.3 months in the prior month but up from 3.6 months from one year earlier.
First-time buyers were responsible for 27% of sales in October, up from 26% in September but down from 28% in October 2023.
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” said NAR Chief Economist Lawrence Yun. “Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”
The median existing-home price for all housing types in October was $407,200, up 4.0% from the $391,600 recorded one year earlier. All four major regions experienced price increases. Cash sales accounted for 27% of transactions in October, down from 30% in September and 29% in October 2023.
“The ongoing price gains mean increasing wealth for homeowners nationwide,” Yun added. “Additional inventory and more home building activity will help price increases moderate next year.”
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