Existing Home Sales Rise in October

Existing-home sales rose 0.8% in October to a seasonally adjusted annual rate of 6.34 million, according to the National Association of Realtors (NAR). Sales fell year-over-year, down 5.8% from October 2020. First-time buyers were responsible for 29% of sales in October, up from 28% in September and 32% in October 2020.

Lawrence Yun, NAR’s chief economist, states that “Inflationary pressures, such as fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”

The total housing inventory in October was 1.25 million units, down 0.8% from September’s inventory and down 12.0% from one year ago (1.42 million). The median home price was $353,900, up 13.1% from October 2020 ($313,000), as prices rose in every region. This marks 116 straight months of year-over-year gains.

Distressed sales represented less than 1% of sales in October, equal to the previous month’s percentage and equal to October 2020.

Read the NAR release.