ARLINGTON, Va.—Existing-home sales rose 1.9% in October to a seasonally adjusted annual rate of 5.5 million units, with sales decreasing only in the West region.
NAFCU Chief Economist and Vice President of Research Curt Long said the market remains constrained by supply.
"Mortgage rates continue to be low, driving some demand. Months of supply has ticked down, indicating a tighter market which will put upward pressure on prices," said Long.
Based on current sales, there were 3.9 months of supply at the end of October, down 0.2 months from September. Analysts consider six months of supply to be roughly balanced between supply and demand.
The median existing home price also decreased, down from $272,100 in September to $270,900 in October. That amount represents a 6.2% increase from the median price a year ago, Long said.
"Housing starts have risen this year and permits to build are at a 12-year high, but that supply relief is months away," Long added. "NAFCU expects more modest growth with some fluctuation in the housing market."
Sales increased in all three regions during the month: sales in the South grew 7.8%, in the West 3.7%, and in the Midwest 2.4%.