ARLINGTON, Va.—Existing home sales fell 4.1% in October to a seasonally-adjusted annual rate of 3.79 million units, representing a 14.6% decrease in sales versus a year ago, according to new data from the Commerce Department.
"In October, existing home sales experienced another difficult month, reaching the lowest level for transactions in thirteen years,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Listings remain low, which has served to buoy prices. Median sales prices fell on the month but are still up 3.4% year-over-year. According to Redfin data, 31.7% of homes sold above the list price in October, which is nearly 10%age points above the same month in 2019.”
In October, sales of existing homes fell in the South (-7.1%), followed by the Northeast (-4%), and the West (-1.4%). Sales were flat in the Midwest.
Current Supplies
Based on current sales, there were nearly 3.6 months of supply if existing homes at the end of October. Analysts consider six months of inventory a rough balance between supply and demand, noted Long.
The median existing home price, not seasonally-adjusted, fell 0.3% in October to $391,800, a 3.4% increase versus a year ago.
“With rates now in decline, more homes are beginning to come on the market. Over the four-week period ending just prior to Thanksgiving, Redfin recorded the largest year-over-year increase in listings in two years. The housing market should perk up a bit over the near term due to the move in rates, with more improvement in store next year as Fed rate cuts draw nearer,” concluded Long.
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