WASHINGTON–Despite low inventory and ongoing price increases prices, home sales rose again in October for the second straight month, according to a new report from the National Association of Realtors.
The NAR reported existing-home sales, which include completed transactions that include single-family homes, townhomes, condominiums and co-ops were up 0.8% from September to a seasonally adjusted annual rate of 6.34 million in October. Home sales were down 5.8% from a year ago, which was a cyclical peak in a pandemic surge in home buying, according to the NAR.
The median existing-home price for all housing types in October was $353,900, up 13.1% from a year ago. This marks 116 straight months -- or more than nine and a half years -- of year-over-year increases, the longest-running streak on record.
Two of the four major U.S. regions saw month-over-month sales climb, one region reported a drop and the fourth area held steady in October. On a year-over-year basis, each region witnessed sales decrease, the NAR reported.
Key Data Points
According to the NAR report for October:
- Total housing inventory at the end of October amounted to 1.25 million units, down 0.8% from September and down 12.0% from one year ago (1.42 million). Unsold inventory sits at a 2.4-month supply at the current sales pace, equal to September's supply, and down from 2.5 months in October 2020.
- Properties typically remained on the market for 18 days in October, up from 17 days in September and down from 21 days in October 2020. Eighty-two percent of homes sold in October 2021 were on the market for less than a month.
- In October, first-time buyers were responsible for 29% of sales, up from 28% in September and down from 32% in October 2020. The NAR said its 2021 Profile of Home Buyers and Sellers – released earlier this month – reported that the annual share of first-time buyers was 34%.
- Individual investors or second-home buyers, who make up many cash sales, purchased 17% of homes in October, up from both 13% in September and from 14% in October 2020. All-cash sales accounted for 24% of transactions in October, up from both 23% in September and from 19% in October 2020.
- Distressed sales – foreclosures and short sales – represented less than 1% of sales in October, equal to the percentage seen a month prior and equal to October 2020.
The NAR said Freddie Mac data show the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.07 in October, up from 2.90% in September. The average commitment rate across all of 2020 was 3.11%.
Regional Breakdown
Existing-home sales in the Northeast fell 2.6% in October, registering an annual rate of 750,000, a 13.8% decline from October 2020. The median price in the Northeast was $379,100, up 6.4% from one year ago.
Existing-home sales in the Midwest rose 4.2% to an annual rate of 1,500,000 in October, a 6.3% decrease from a year ago. The median price in the Midwest was $259,800, a 7.8% jump from October 2020.
Existing-home sales in the South increased 0.4% in October, posting an annual rate of 2,780,000, a 3.5% drop from one year ago. The median price in the South was $315,500, a 16.1% climb from one year prior.
Existing-home sales in the West neither rose nor fell from the prior month's level, registering an annual rate of 1,310,000 in October, down 5.1% from one year ago. The median price in the West was $507,200, up 7.7% from October 2020.