NAR: Existing-home sales receded 4.1 percent in October

WASHINGTON — Existing-home sales dropped in October, according to the National Association of Realtors. Among the four major U.S. regions, sales slid in the Northeast, South and West, but were unchanged in the Midwest. All four regions experienced year-over-year sales declines.

Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — fell 4.1 percent from September to a seasonally adjusted annual rate of 3.79 million in October. Year over year, sales tumbled 14.6 percent (down from 4.44 million in October 2022).

“Prospective homebuyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation,” said Lawrence Yun, NAR chief economist. “Multiple offers, however, are still occurring, especially on starter and midpriced homes, even as price concessions are happening in the upper end of the market.”

Total housing inventory registered at the end of October was 1.15 million units, up 1.8 percent from September but down 5.7 percent from one year ago (1.22 million). Unsold inventory sits at a 3.6-month supply at the current sales pace, up from 3.4 months in September and 3.3 months in October 2022.

The median existing-home price for all housing types in October was $391,800, an increase of 3.4 percent from October 2022 ($378,800). All four U.S. regions registered price increases.

“While circumstances for buyers remain tight, home sellers have done well as prices continue to rise year over year, including a new all-time high for the month of October,” Yun said. “In fact, a typical homeowner has accumulated more than $100,000 in housing wealth over the past three years.”

REALTORS CONFIDENCE INDEX

According to the monthly REALTORS Confidence Index, properties typically remained on the market for 23 days in October, up from 21 days in September 2023 and October 2022. Sixty-six percent of homes sold in October were on the market for less than a month.

First-time buyers were responsible for 28 percent of sales in October, up from 27 percent in September and identical to October 2022. NAR’s 2023 Profile of Home Buyers and Sellers — released earlier in November — found that the annual share of first-time buyers was 32 percent.

All-cash sales accounted for 29 percent of transactions in October, unchanged from September but up from 26 percent in October 2022.

Individual investors or second-home buyers, who make up many cash sales, purchased 15 percent of homes in October, down from 18 percent in September and 16 percent one year ago.

Distressed sales — foreclosures and short sales — represented 2 percent of sales in October, virtually unchanged from September and the previous year.

MORTGAGE RATES

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.44 percent as of Nov. 16. That’s down from 7.50 percent the previous week but up from 6.61 percent one year ago.

“Fortunately, mortgage rates have fallen for the third straight week, stirring up buying interest,” Yun added. “Though limited now, expect housing inventory to improve after this winter and heading into the spring. More inventory will result in more home sales.”

SINGLE-FAMILY AND CONDO/CO-OP SALES

Single-family-home sales declined to a seasonally adjusted annual rate of 3.38 million in October, down 4.2 percent from 3.53 million in September and 14.6 percent from the previous year. The median existing single-family-home price was $396,100 in October, up 3.0 percent from October 2022.

Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 410,000 units in October, down 2.4 percent from September and 14.6 percent from one year ago. The median existing condo price was $356,000 in October, up 7.6 percent from the prior year ($331,000).

REGIONAL BREAKDOWN

Existing-home sales in the Northeast dipped 4.0 percent from September to an annual rate of 480,000 in October, down 15.8 percent from October 2022. The median price in the Northeast was $439,200, up 7.5 percent from the previous year.

At an annual rate of 930,000 in October, existing-home sales in the Midwest were unchanged from the prior month but down 13.9 percent from one year ago. The median price in the Midwest was $285,100, up 4.2 percent from October 2022.

Existing-home sales in the South retracted 7.1 percent from September to an annual rate of 1.69 million in October, a decline of 14.6 percent from the previous year. The median price in the South was $357,700, up 3.5 percent from last year.

In the West, existing-home sales decreased 1.4 percent from the prior month to an annual rate of 690,000 in October, down 14.8 percent from one year ago. The median price in the West was $602,200, up 2.3 percent from October 2022.