ARLINGTON, Va.—Existing home sales declined 5.9% in October to a seasonally-adjusted annualized rate of 4.4 million units, marking the ninth straight month of declining sales and representing a 28.4% decrease in sales compared to last year, NAFCU reported.
“The median home price declined for a fourth straight month, following typical seasonal patterns,” said NAFCU Chief Economist and Vice President of Research Curt Long. “High mortgage rates continue to sideline potential homebuyers. According to the National Association of Realtors properties typically remained on the market 21 days in October, two days longer than in September.”
Long noted that although “the inventory to sales ratio did rise slightly in October,” the ratio is only half its usual level.
"Low inventory has helped buoy prices even while interest rates rose this year,” added Long. “Median home price declined in seasonal fashion last month, but the year-over-year price hit a record 128 straight months with year-over-year growth.”
Decline in 4 Regions
Sales fell in all four regions with a 9.1% decline in the West followed by the Northeast (-6.6%), the Midwest (-5.3%), and the South (-4.8%), Long said.
Long added that even though the economy is faring better, “the housing recession shows no signs of ending soon.”