Existing-home sales grew 3.4% in October - first year-over-year gain since July 2021

Existing-home sales rose in October, according to the Washington, D.C.-based National Association of Realtors (NAR). October sales improved in all four major U.S. regions while year-over-year, sales were up in three regions but were unchanged in the Northeast.

Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — expanded 3.4 percent from September to a seasonally adjusted annual rate of 3.96 million in October. Year-over-year, sales rose 2.9 percent, 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,” said NAR Chief Economist Lawrence Yun. “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 percent from September and 19.1 percent from one 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.

The median existing-home price for all housing types in October was $407,200, up 4 percent from one year ago ($391,600). All four U.S. regions registered price increases.

“The ongoing price gains mean increasing wealth for homeowners nationwide,” Yun added. “Additional inventory and more home building activity will help price increases moderate next year.”

According to the monthly Realtors Confidence Index, properties typically remained on the market for 29 days in October, up from 28 days in September and 23 days in October 2023.

First-time buyers were responsible for 27 percent of sales in October, up from 26 percent in September but down from 28 percent in October 2023.

Cash sales accounted for 27 percent of transactions in October, down from 30 percent in September and 29 percent in October 2023.

Individual investors or second-home buyers, who make up many cash sales, purchased 17 percent of homes in October, up from 16 percent in September and 15 percent in October 2023.

Distressed sales — foreclosures and short sales — represented 2 percent of sales in October, unchanged from the previous month and the previous year.

In the West, existing-home sales increased 1.3 percent in October to an annual rate of 770,000, up 8.5 percent from a year ago. The median price in the West was $627,700, up 4.4 percent from October 2023.