Existing home sales dropped once again in October, according to the National Association of Realtors (NAR).
Total existing home sales, or completed transactions that include single-family homes, townhomes, condominiums, and co-ops, fell 4.1% from September to a seasonally adjusted annual rate of 3.79 million in October. Year over year, sales tumbled 14.6%, down from 4.44 million in October 2022.
“Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation,” says NAR chief economist Lawrence Yun. “Multiple offers, however, are still occurring, especially on starter and mid-priced homes, even as price concessions are happening in the upper end of the market.”
At the end of the month, total housing inventory was at 1.15 million units, up 1.8% from September but down 5.7% from one year ago. Unsold inventory sits at a 3.6-month supply at the current sales pace, up from 3.4 months in September and 3.3 months in October 2022.
The median existing home price for all housing types in October was $391,800, an increase of 3.4% from October 2022. All four U.S. regions registered price increases.
“While circumstances for buyers remain tight, home sellers have done well as prices continue to rise year over year, including a new all-time high for the month of October,” adds Yun. “In fact, a typical homeowner has accumulated more than $100,000 in housing wealth over the past three years.”
According to the monthly Realtors Confidence Index, properties typically remained on the market for 23 days in October, up from 21 days in September and October 2022. Sixty-six percent of homes sold were on the market for less than a month.
First-time buyers were responsible for 28% of sales last month, up from 27% in September. All-cash sales accounted for 29% of transactions. Individual investors or second-home buyers purchased 15% of homes, and distressed sales represented 2% of sales.
Single-family home sales declined to a seasonally adjusted annual rate of 3.38 million, down 4.2% from 3.53 million in September and 14.6% from the previous year. The median existing single-family home price was $396,100, up 3% from October 2022.
Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 410,000 units, down 2.4% from September and 14.6% from one year ago. The median existing condo price was $356,000 in October, up 7.6% from the prior year.
Among the four major U.S. regions, sales slid in the Northeast, South, and West but were unchanged in the Midwest. All four regions experienced year-over-year sales declines.
