Existing-home sales fell 5.9% in October to a seasonally adjusted annual rate of 4.43 million, according to the National Association of Realtors (NAR). Sales fell year-over-year, down 28.4% from October 2021. First-time buyers were responsible for 28% of sales in October, down from 29% in both September 2022 and October 2021.
“More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher,” said NAR Chief Economist Lawrence Yun. “The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years.”
The total housing inventory in October was 1.22 million units, down 0.8% from September and one year ago. The median home price was $379,100, up 6.6% from October 2021 ($355,700), as prices rose in every region. This marks 128 consecutive months of year-over-year gains, the longest-running streak on record.
Distressed sales—foreclosures and short sales—represented less than 1% of sales in October down from 2% in September and identical to October 2021.
Read the NAR release.