(The Center Square) – Existing-home sales climbed 3.4% in October, according to the latest figures released Thursday by the National Association of Realtors.
Total existing-home sales – completed deals that include single-family homes, townhomes, condominiums and co-ops – increased 3.4% from September to a seasonally adjusted annual rate of 3.96 million in October. Year-over-year, sales increased 2.9%, up from 3.85 million in October 2023.
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” NAR Chief Economist Lawrence Yun said. “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.”
Total housing inventory registered at the end of October was 1.37 million units, up 0.7% from September and 19.1% from a year ago (1.15 million). Unsold inventory sits at a 4.2-month supply at the current sales pace, down from 4.3 months in September but up from 3.6 months in October 2023. A six-month supply is generally considered to be a balanced housing market.
The median existing home price for all housing types in October was $407,200, up 4% from one year ago when it was $391,600.
“The ongoing price gains mean increasing wealth for homeowners nationwide,” Yun said. “Additional inventory and more home building activity will help price increases moderate next year.”
The 30-year fixed-rate mortgage averaged 6.78% as of Nov. 14, according to Freddie Mac. That’s down from 6.79% one week ago and 7.44% one year ago.
By Brett Rowland |Â The Center Square
