Existing-Home Sales in the US Decline in October, National Association of REALTORS® Reports
According to the National Association of REALTORS® (NAR), existing-home sales in the US experienced a drop in October. Sales declined in the Northeast, South, and West regions, while they remained unchanged in the Midwest. Year-over-year, all four regions saw declines in sales.
Total existing-home sales fell 4.1% from September to a seasonally adjusted annual rate of 3.79 million in October. Furthermore, compared to the previous year, sales tumbled by 14.6%.
The decrease in sales is attributed to the lack of housing inventory and high mortgage rates, making it challenging for prospective homebuyers to find suitable properties. Despite these challenges, multiple offers are still occurring, especially in the starter and mid-priced home segments.
In terms of housing inventory, there was a slight increase of 1.8% from September. However, compared to the same time last year, the total housing inventory is down by 5.7%.
The median existing-home price for all housing types in October was $391,800, reflecting a 3.4% increase compared to October 2022. Properties also stayed on the market slightly longer, with an average of 23 days in October, up from 21 days in September.
First-time buyers accounted for 28% of sales in October, indicating a strong interest in the market. Additionally, all-cash sales made up 29% of transactions, highlighting the presence of cash buyers. Distressed sales, on the other hand, represented only 2% of total sales during the month.
In more positive news for potential buyers, mortgage rates have fallen for the third consecutive week, sparking increased interest in purchasing homes.
Breaking down the data further, single-family home sales experienced a decline of 4.2% from September. Existing condominium and co-op sales also recorded a decrease of 2.4%.
Regionally, existing-home sales in the Northeast dipped 4.0%, while sales in the Midwest remained unchanged. In the South, sales retracted 7.1%, and in the West, there was a decrease of 1.4%.
The National Association of REALTORS®, the largest trade association representing over 1.5 million members involved in the real estate industry, compiles data on existing-home sales in the US to provide insights into market trends and conditions.
Despite the challenges posed by low housing inventory and high mortgage rates, the real estate market continues to show resiliency with interested buyers seeking properties despite a decline in sales in October.
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