The median home price also continued to rise
of ConsumerAffairs
Taking advantage of an early fall dip in mortgage rates, homebuyers returned to the housing market, boosting existing home sales in October to the first year-over-year gain since July 2021.
The National Association of Realtors (NAR) reports total existing home sales rose 3.4% from September and 2.9% over October 2023.
"Increasing inventory is leading to more transactions," said NAR Chief Economist Lawrence Yun.
Yun also stressed the importance of mortgage financing for first-time buyers, acknowledging that while mortgage rates are still high, they are expected to stabilize.
Housing inventory at the end of October was reported at 1.37 million units, a slight increase of 0.7% from September and a significant 19.1% rise from the previous year. The unsold inventory represents a 4.2-month supply at the current sales pace, slightly down from 4.3 months in September but up from 3.6 months in October 2023.
But buyers are not finding much relief when it comes to prices. The median price for existing homes in October was $407,200, a 4.0% increase from the previous year. That number also suggests that buyers favored more expensive homes in October.
Regional breakdown
All regions recorded price hikes, contributing to increased homeowner wealth nationwide. Yun anticipates that additional inventory and increased home building will help moderate price increases in the coming year.
Regionally, the Northeast saw a 2.2% rise in sales from September, maintaining the same rate as October 2023. The Midwest experienced a 6.7% increase, with the South and West seeing gains of 2.9% and 1.3%, respectively.
The median prices also rose across all regions, with the Northeast leading at $472,900, a 7.6% increase from last year.
Overall, Yun said the housing market is showing signs of recovery, with increased sales and rising prices, although challenges remain for first-time buyers due to high mortgage rates and limited affordability.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-22 12:50:38
