Existing home sales increased in October, marking two straight months of growth, according to the latest monthly report from the National Association of Realtors (NAR).
Total existing home sales, which include single-family homes, townhomes, condominiums, and co-ops, rose 0.8% from September to a seasonally adjusted annual rate of 6.34 million, down 5.8% from a year ago.
“Home sales remain resilient, despite low inventory and increasing affordability challenges,” says Lawrence Yun, NAR’s chief economist. “Inflationary pressures, such as fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”
Total housing inventory fell to 1.25 million units at the end of October, down 0.8% from September and down 12% from one year ago. Unsold inventory sits at a 2.4-month supply at the current sales pace, equal to September’s supply, and down from 2.5 months in October 2020.
The median existing home price for all housing types was $353,900, up 13.1% from October 2020. This marks 116 straight months of year-over-year increases, the longest-running streak on record.
Properties typically remained on the market for 18 days in October, up from 17 days in September and down from 21 days in October 2020. Eighty-two percent of homes sold in October 2021 were on the market for less than a month.
“Among some of the workforce, there is an ongoing trend of flexibility to work anywhere, and this has contributed to an increase in sales in some parts of the country,” continues Yun. “Record-high stock markets and all-time high home prices have worked to significantly raise total consumer wealth and, when coupled with extended remote work flexibility, elevated housing demand in vacation regions.”
First-time buyers were responsible for 29% of sales last month, up from 28% in September and down from 32% in October 2020. Individual investors or second-home buyers purchased 17% of homes in October, up from 13% in September and from 14% in October 2020. Distressed sales, or foreclosures and short sales, represented less than 1% of sales in October.
Single-family home sales rose to a seasonally adjusted annual rate of 5.66 million in October, up 1.3% from 5.59 million in September and down 5.8% from one year ago. The median existing single-family home price was $360,800, up 13.5% from October 2020.
Two of the four major U.S. regions saw month-over-month sales climb, one region reported a drop, and the fourth area held steady in October. On a year-over-year basis, each region witnessed sales decrease.
Existing home sales in the Northeast fell 2.6% in October, a 13.8% decline from October 2020. Sales in the Midwest rose 4.2%, a 6.3% decrease from a year ago, and sales in the South increased 0.4%, a 3.5% drop from one year ago. Sales in the West neither rose nor fell from the prior month’s level, down 5.1% from one year ago.
