Sales of pre-occupied U.S. homes rose in October, the first annual increase in more than three years, providing a boost to homebuyers relaxation in rates And properties on the market increased.
Existing home sales rose 3.4% last month, from septemberThe National Association of Realtors said Thursday the seasonally adjusted annual rate stood at 3.96 million. This matches the annual pace set in July.
Sales increased 2.9% compared to October last year, representing the first year-over-year gain since July 2021. The latest home sales were 3.93 million pace economists were expecting, according to FactSet.
Home prices rose on an annual basis for the 16th consecutive month. The national average sales price rose 4% from a year earlier to $407,200.
“The worst of the decline in home sales may be over, with rising inventory leading to more transactions,” said Lawrence Yun, chief economist at NAR.
NAR said there were 1.37 million unsold homes at the end of October, up 0.7% from September and 19% from October last year.
This implies a supply of 4.2 months at the current sales pace, up from a pace of 3.6 months at the end of October last year. Traditionally, a 5 to 6 month supply is considered to be a balanced market between buyers and sellers.
With just two months left in the year, current home sales are on track to be the lowest annual home sales since 1995, Yun said.
The U.S. housing market has been in a sales decline since 2022, when mortgage rates began climbing from pandemic-era lows.
Existing home sales fell to a nearly 30-year low last year, according to mortgage buyer Freddie Mac, as the average rate on a 30-year mortgage hit a 23-year high of nearly 8%.
The average rate on a 30-year mortgage fell to a two-year low of 6.08% in September, when perhaps as many purchase contracts were signed on homes as were officially sold in October. But it has been mostly rising since then, reaching 6.78% last week.
