Existing-home sales—a metric that includes single-family homes, townhomes, condominiums and co-ops—grew 2.9% in October, the first year-over-year increase in more than three years, to a seasonally adjusted rate of 3.96 million, up from 3.85 million one year ago. Up 3.4% from September, existing-home sales also increased in all four U.S. regions month-over-month. Year-over-year, existing-home sales rose in every region but the Northeast, where they remained the same.
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” said National Association of REALTORS®’ (NAR) Chief Economist Lawrence Yun. “Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”
Total housing inventory for October was 1.37 million units, a 0.7% increase from September and a 19.1% rise year-over-year from October 2023. Unsold inventory sits at a 4.2 month’s supply at the current pace of sales, a slight decrease from 4.3 months in September, but still a year-over-year increase from 3.6 months in October 2023.
According to Realtor.com® Senior Chief Economist Danielle Hale, “this marks a fifth consecutive month of a ‘balanced’ reading in this metric that has been in seller-friendly territory for years.”
The median home price for all existing home types was $407,200—a 4% year-over-year increase from October 2023 ($391,600). All four U.S. regions once again registered an increase in median home price.
“The ongoing price gains mean increasing wealth for homeowners nationwide,” Yun elaborated. “Additional inventory and more home building activity will help price increases moderate next year.”
The monthly REALTORS® Confidence Index showed that properties stayed on the market for an average of 29 days in October, a one day increase from the 28 day average in September—and a year-over-year increase from 23 days in October 2023.
The index also showed that first-time homebuyers accounted for 27% of existing-home sales in October, up from 26% in September, but down 28% year-over-year in October 2023. The proportion of first-time homebuyers in the market over the last year or so has fallen to an all-time low, according to another recent NAR study.
Sales completed solely with cash comprised 27% of all October transactions, a decrease from 30% in September and 29% from October 2023.
Property investors, who frequently make up a significant portion of cash sales, bought 17% of existing homes on the market in October, an increase from 16% in September 2024 and 15% in October 2023.
Properties that were considered distressed—foreclosures or short sales—made up 2% of all sales, which was unchanged both month-over-month and year-over-year.
According to Freddie Mac, 30-year fixed mortgage rates sat at an average of 6.78% as of November 14, down from 6.79% last week and also down from 7.44% last year at this time.
Regional breakdown
In the Northeast, existing-home sales grew from 2.2% in October to an annual rate of 470,000, which was identical to October 2023. Median home price for the region was $472,900—an increase of 7.6% year-over-year.
For the Midwest, existing-home sales saw a 6.7% jolt in October to an annual rate of 950,000, which was up 1.1% year-over-year. The median home price for the Midwest was $305,300—a 7.2% increase year-over-year.
In the South, existing-home sales rose 2.9% in October to an annual rate of 1.77 million, a 2.3% year-over-year increase. The median home price for the region was $361,200, a 0.9% increase from one year ago.
The West saw existing-home sales increase 1.3% in October to an annual rate of 770,000—an 8.5% year-over-year increase. The median home price in the West was $627,700, a 4.4% increase year-over-year.
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