Topline
Existing home sales reached an eight-month high in October as easing mortgage rates pulled more buyers back into the market even while limited inventory kept prices climbing across every region.
SAN FRANCISCO – DECEMBER 28: A sold sign is seen in front of a recently purchased home December 28, 2006 in San Francisco. Existing homes reportedly inched up 0.6 percent in November as home prices continued a downward slide for the fourth consecutive month. The median home price for an existing home in the United States dipped to $218,000, down 3.1 percent comparing to the same month one year ago. (Photo by Justin Sullivan/Getty Images)
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Key Facts
The National Association of Realtors (NAR) reported on Thursday that existing home sales rose 1.7% year over year in October to an annualized rate of 4.1 million units.
Home sales most sharply increased in the Midwest (5.3%), rose slightly in the South (0.5%) and held steady in the Northeast.
Only the West recorded a decline (-1.3%).
The national median price for homes sold in October hit $415,200, with the West topping all regions at $628,500 and the Midwest remaining the lowest priced region at $319,500, on average.
The report noted all regions posted annual price gains, led by a 6.5% jump in the Northeast, where limited supply pushes values higher.
Crucial Quote
“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 buyers fared better in the Midwest because of the plentiful supply of affordable houses and in the South because there is sufficient inventory.”