Existing home sales were up 1.4% to a seasonally adjusted 5.22 million-unit rate in October from an unrevised 3.4% decline to a 5.15 million sales pace the previous month, the National Association of Realtors announced Wednesday.
The October rate is a 5.1% decrease from the same month a year ago. The headline number was above the median 5.20 million unit pace predicted by economists polled by IFR Markets.
“After six consecutive months of decline, buyers are finally stepping back into the housing market,” said NAR chief economist Lawrence Yun. “Gains in the Northeast, South and West — a reversal from last month’s steep decline or plateau in all regions — helped overall sales activity rise for the first time since March 2018.”
Sales in the regions were mostly higher. They were up 2.8% in the West, 1.9% in the South, and 1.5% in the Northeast, but down 0.8% in the Midwest.
The median sales price was $255,400 in October, up 3.8% from a year ago.
Inventory levels dipped to 1.85 million existing homes from 1.88 million in September, representing a 4.3-month supply at the current pace. Inventory was up from 3.9 months in October 2017.
“Rising interest rates and increasing home prices continue to suppress the rate of first-time homebuyers,” Yun said. “Home sales could further decline before stabilizing. The Federal Reserve should, therefore, re-evaluate its monetary policy of tightening credit, especially in light of softening inflationary pressures, to help ease the financial burden on potential first-time buyers and assure a slump in the market causes no lasting damage to the economy.”
