Existing home sales experienced an increase in October, reaching an eight-month high. This surge is attributed to a decrease in mortgage rates, which incentivized more buyers to enter the market.
Despite the rise in sales volume, limited housing inventory continued to exert upward pressure on prices across all regions of the country. The National Association of Realtors reported a 1.7% year-over-year increase in existing home sales for October, bringing the annualized rate to 4.1 million units.
The Midwest region saw the most significant jump in home sales, with a 5.3% increase. The South experienced a modest rise of 0.5%, while the Northeast remained stable.
Conversely, the West was the only region to record a decline in sales, falling by 1.3%. Nationally, the median price for homes sold in October was $415,200.
The West recorded the highest median price at $628,500, while the Midwest offered the lowest prices, averaging $319,500. Despite the varied sales performance, all regions observed annual price gains.
The Northeast led these gains with a 6.5% increase, driven by a constrained supply that boosted property values. According to NAR chief economist Lawrence Yun, the uptick in home sales in October, even amidst a government shutdown, was a direct result of homebuyers capitalizing on reduced mortgage rates.
He further highlighted that first-time buyers found more favorable conditions in the Midwest due to an ample supply of affordable homes, and in the South, where inventory levels were sufficient.
