Existing home sales fall further, remaining at lowest level since 2010

U.S. second-hand home sales fell the most in nearly a year in October, highlighting the impact of rising mortgage rates and remaining high prices on the resale market.

Data from the National Association of Realtors on Tuesday showed that contract volume fell 4.1% from the previous quarter, with an annualized growth rate of 3.79 million, still the lowest level since 2010. The figure was weaker than all but one estimate in a Bloomberg survey of economists.

Mortgage rates soar and stubborn price Has been frustrating for both buyers and sellers. However, as the Fed’s tightening cycle draws to a close, mortgage rates are falling, giving some hope that the housing market may be bottoming out.

“Fortunately, mortgage rates have fallen for the third consecutive week, stimulating buying interest,” said NAR Chief Economist Lawrence Yun. “While currently limited, housing inventory is expected to grow well into the spring after this winter.” it has been improved.”

The median sales price rose 3.4% from a year earlier to $391,800, the highest level in any October data since 1999. Nearly a third of homes sold for more than list price, Yun added, indicating that multiple offers are still being made, especially on first-time homes. and moderately priced homes.

Although the number of homes for sale increased from the previous month to 1.15 million, it was still the lowest in the series for October. At the current sales pace, it would take 3.6 months to sell all properties on the market. Anything less than five months of supply shows a tight market.

NAR reports that 66% of homes sold have been on the market for less than a month. Properties spent an average of 23 days on the market in October, a slight increase from September.

Existing home sales account for the majority of U.S. housing and are calculated at the end of a contract. New home sales data makes up the remainder, based on contract signings, and will be released next week.

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