In a recent announcement from the National Association of Realtors (NAR) on Thursday, it was revealed that existing home sales in the United States experienced a stronger-than-anticipated resurgence in October. The data indicates that sales climbed by 3.4% to reach an annual rate of 3.96 million, recovering from a 1.3% dip which resulted in a revised figure of 3.83 million the previous month.
Economists initially projected a more modest rise of 2.3%, expecting figures to hit 3.93 million from September's original report of 3.84 million.
The NAR highlighted that the October sales not only showcased a rebound but also a 2.9% increase from the same period the previous year, marking the first year-on-year growth since July 2021. According to Lawrence Yun, NAR's Chief Economist, "The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions. Additional job gains and continued economic growth appear assured, resulting in growing housing demand."
Yun further noted the challenges facing first-time homebuyers, emphasizing the critical role of mortgage financing. Despite higher mortgage rates, an anticipation of stabilization offers hope to potential new homeowners.
As for market inventory, October saw a slight increase to 1.37 million units, up 0.7% from September's 1.36 million units, and a notable 19.1% rise over last year’s 1.15 million units.
The median price for existing homes in October rose to $407,200, reflecting a 4.0% increase compared to $391,600 in October of last year, according to NAR's findings.
Looking ahead, the Commerce Department is set to deliver its report on new home sales for October next Tuesday.
