Nation’s existing-home sales climb 1.9 percent in October

WASHINGTON — Existing-home sales in the U.S. rose in October, a slight recovery from the declines seen in September, according to the National Association of Realtors. The four major U.S. regions were split last month, with the Midwest and the South seeing growth and the Northeast and the West both reporting a drop in sales.

Total existing-home sales (completed transactions that include single-family homes, townhomes, condominiums and co-ops) increased 1.9 percent from September to a seasonally adjusted annual rate of 5.46 million in October. Despite lingering regional variances, overall sales are up 4.6 percent from a year ago (5.22 million in October 2018).

Lawrence Yun, chief economist for the NAR, said this sales increase is encouraging and that he expects added growth in the coming months.

“Historically low interest rates, continuing job expansion, higher weekly earnings and low mortgage rates are undoubtedly contributing to these higher numbers,” he said. “We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”

The median existing-home price for all housing types in October was $270,900, up 6.2 percent from October 2018 ($255,100), as prices rose in all regions. October’s price increase marks 92 straight months of year-over-year gains.

Total housing inventory at the end of October sat at 1.77 million units, down approximately 2.7 percent from September and 4.3 percent from one year ago (1.85 million). Unsold inventory sits at a 3.9-month supply at the current sales pace, down from 4.1 months in September and from the 4.3-month figure recorded in October 2018.

“The issuance of more housing permits is a very positive sign and a good step toward more inventory,” Yun said, citing the latest data for housing starts.

“In order to better counter and even slow the increase in housing prices, homebuilders will have to bring additional homes on the market,” he said.

Properties typically remained on the market for 36 days in October, up from 32 days in September and consistent with numbers from October 2018. Forty-six percent of homes sold in October 2019 were on the market for less than a month.

First-time buyers were responsible for 31 percent of sales in October, down from 33 percent in September and identical to the 31 percent recorded in October 2018. The NAR’s 2019 Profile of Home Buyers and Sellers, released earlier this month, revealed that the annual share of first-time buyers was 33 percent.

Individual investors or second-home buyers, who account for many cash sales, purchased 14 percent of homes in October 2019, unchanged from September but down from the 15 percent figure recorded in October 2018. All-cash sales accounted for 19 percent of transactions in October, up from 17 percent in August but down from 23 percent in October 2018.

Distressed sales (foreclosures and short sales) represented 2 percent of sales in October, unchanged from September but down from 3 percent in October 2018.

“It is great to see home sales rise, along with an increase in housing permits,” said NAR President Vince Malta, broker at Malta & Company Inc. in San Francisco. “Both homebuyers and the homesellers are being rewarded by these developments, and we see that conditions remain extremely favorable for real estate investment in America.”

Realtor.com’s Market Hotness Index, which measures time-on-the-market data and listing views per property, revealed that the hottest metro areas in October were Fort Wayne, Indiana; Pueblo, Colorado; Columbus, Ohio; Rochester, New York; and Colorado Springs, Colorado.

Active listings on Realtor.com increased by more than 1 percent from one year ago in only a few of the largest metro areas: Minneapolis-St. Paul-Bloomington (16 percent), Las Vegas-Henderson-Paradise (14 percent), San Antonio-New Braunfels (9 percent), Detroit-Warren-Dearborn (5 percent), Atlanta-Sandy Springs (5 percent), Denver-Aurora-Lakewood (4 percent), Dallas-Fort Worth-Arlington (4 percent) and Myrtle Beach-Conway (4 percent).

Mortgage rates were trending downward July through September but rose slightly in October. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 3.69 percent in October, up from 3.61 percent in September. The average commitment rate across all of 2018 was 4.54 percent.

SINGLE-FAMILY, CONDO/CO-OP SALES Single-family home sales sat at a seasonally adjusted annual rate of 4.87 million in

October, down from 4.77 million in September but up 5.4 percent from a year ago. The median existing single-family home price was $273,600 in October 2019, up 6.2 percent from October 2018.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 590,000 units in October, about even with the previous month and 1.7 percent lower than a year ago. The median existing condo price was $248,500 in October, an increase of 5.6 percent from a year ago.

REGIONAL BREAKDOWN Compared to last month, October sales increased in the Midwest and South regions, but sales are up in all regions from a year ago. Median home prices in all regions increased from one year ago, with the West region showing the strongest price gain.

October 2019 existing-home sales in the Northeast fell 1.4 percent to an annual rate of 690,000, with no change from a year ago. The median price in the Northeast was $296,700, up 5.7 percent from October 2018.

In the Midwest, existing-home sales increased 1.6 percent to an annual rate of 1.29 million, up 2.4 percent from a year ago. The median price in the Midwest was $209,900, a 6.7 percent jump from a year ago.

Existing-home sales in the South increased 4.4 percent to an annual rate of 2.35 million in October, up 7.8 percent from a year ago. The median price in the South was $234,900, a 6.0 percent increase from this time last year.

Existing-home sales in the West declined 0.9 percent to an annual rate of 1.13 million in October, 3.7 percent above a year ago. The median price in the West was $410,700, up 7.8 percent from October 2018.