Existing Home Sales Rise in October
Results released from October shows an eight month high in existing home sales. This figure is supported by lower mortgage rates and increased inventory. Mortgage rates have remained in the high 6% throughout the year but found some relief in September with Fed cuts.
According to an analysis from the National Association of Home Builders (NAHB), the existing home inventory level is down 0.7% from the previous month. However it is up 10.9% from a year ago. In October, the number of units available sits at 1.52 million. At this rate, October unsold inventory sits at a 4.4-months’ supply. “Inventory between 4.5 to 6 months’ supply is generally considered a balanced market,” explained Fan-Yu Kuo, NAHB, senior economist.
The first-time buyer share was 32% in October, a positive sign in the entry level-market. This is up from 30% in September and 27% from 2024. In October the median sales price of all existing homes was $415,200, this is a 2.1% increase from last year. “This marks the 28th consecutive month of year-over-year increases,” said Kuo.
In October, existing home sales across all markets increased by 1.2%, this is a seasonally adjusted annual rate of 4.10 million. This is the highest level since February. Compared to 2024, sales were 1.7% higher.
