Existing-home sales increased 1.2% in October compared with September and were up 1.7% compared with October 2024, according to the National Association of Realtors (NAR).
Regionally, and month-over-month, existing-home sales were flat in the Northeast; increased 5.3% in the Midwest, and increased 0.5% in the South; but dropped 1.3% in the West.
Year-over-year, existing-home sales were up 4.3% in the Northeast, 2.1% in the Midwest, and 2.8% in the South, but were down 2.6% in the West.
“Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates,” says Lawrence Yun, chief economist for NAR, in a statement. “First-time homebuyers are facing headwinds in the Northeast due to a lack of supply and in the West because of high home prices. 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.”
“Rents are decelerating which will reduce inflation and encourage the Federal Reserve to continue cutting rates and pulling back their quantitative tightening,” Yun adds. “This will help bring more homebuyers into the market since the Fed rate has an indirect impact on mortgage rates.”
The total inventory of existing-homes for sale in October was around 1.52 million units, down 0.7% from September but up 10.9% from October 2024.
That’s about a 4.4-month supply at the current sales pace, down from 4.5 months in September but up from 4.1 months in October 2024.
The median sale price of an existing-home sold in October was $415,200, up 2.1% from one year ago.
October marked the the 28th consecutive month of year-over-year price increases.
The average time on market was 34 days, up from 33 days last month and 29 days in October 2024.
Photo: Scott Webb