WASHINGTON–Tighter home inventories combined with higher home prices are putting a strain on the housing market.
The National Association of Realtors reported that sales of existing homes came in at 5.36 million in October, down 3.4% from September, a level that marked the best in seven years. Sales were 3.9% higher compared to the same period a year ago, the NAR said.
According to the NAR, there were 2.14 million homes available for sale, or 4.8 months at the current sales pace, which is well below the long-term average of six months.
Meanwhile, during October the national median home price was $219,600, up 5.8% vs. a year ago. The South and the West regions saw declines, while prices were unchanged in the Northeast.
First-time homebuyers during October made up 31% of all purchases.