Existing home sales increase 0.8% in October

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Washington, DC, November 22, 2021 (GLOBE NEWSWIRE) –

Highlights

  • Existing home sales rose 0.8% in October from September at a seasonally adjusted annual rate of 6.34 million, supporting sales growth in the previous month.
  • The median selling price of existing homes rose 13.1% year-over-year to $ 353,900.
  • Over the past year, the inventory of unsold homes has fallen 12% to 1.25 million, equivalent to 2.4 months of the monthly sales pace.

Sales of existing homes increased in October, marking two consecutive months of growth, according to the National Association of Realtors®. Two of the top four regions in the United States saw their sales increase on a month-over-month basis, one region reported a decline and the fourth was flat in October. Year over year, every region has experienced a decline in sales.

Total Sales of existing homes,[i] https://www.nar.realtor/existing-home-sales, closed deals that include single-family homes, townhouses, condominiums and co-ops increased 0.8% from September to a low seasonally adjusted annual rate of 6.34 million in October. Sales fell 5.8% from a year ago (6.73 million in October 2020).

“Home sales remain resilient, despite low inventories and growing affordability challenges,” said Lawrence Yun, chief economist of NAR. “Inflationary pressures, such as rapidly rising rents and rising consumer prices, may cause some potential buyers to seek the protection of a fixed, consistent mortgage payment. “

Total housing stock[ii] at the end of October stood at 1.25 million units, down 0.8% from September and 12.0% from a year ago (1.42 million). The unsold inventory stands at a 2.4 month supply at current sales pace, equal to September supply, and down from 2.5 months in October 2020.

The median price of existing homes[iii] for all housing types in October was $ 353,900, up 13.1% from October 2020 ($ 313,000), as prices increased in every region. That marks 116 consecutive months of year-over-year increases, the longest streak on record.

“Among some of the workforce, there is a continuing trend for flexibility to work anywhere, which has contributed to increased sales in some parts of the country,” Yun said. “Record-breaking stock markets and all-time highest house prices have helped to dramatically increase total consumer wealth and, coupled with extensive remote working flexibility, increased demand for housing in the regions.” vacation. “

Properties typically stayed on the market for 18 days in October, down from 17 days in September and down from 21 days in October 2020. Eighty-two percent of homes sold in October 2021 had been on the market for less than a month.

In October, first-time buyers accounted for 29% of sales, down from 28% in September and down from 32% in October 2020. 2021 NAR Home Buyers and Sellers Profile – published earlier this month[iv] – indicated that the annual share of first-time buyers was 34%.

Individual investors or second home buyers, who make up many cash sales, bought 17% of homes in October, up from 13% in September and 14% in October 2020. Cash sales accounted for 24% of transactions in October. October. , compared to 23% in September and 19% in October 2020.

Sales in difficulty[v] – foreclosures and short sales – represented less than 1% of sales in October, equal to the percentage observed a month before and equal to October 2020.

According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage was 3.07 in October, down from 2.90% in September. The average engagement rate for the whole of 2020 was 3.11%.

Sales of single-family homes and condominiums / cooperatives

Single-family home sales reached a seasonally adjusted annual rate of 5.66 million in October, up 1.3% from 5.59 million in September and down 5.8% from a year ago. year. The median price of existing single-family homes was $ 360,800 in October, up 13.5% from October 2020.

Sales of existing condominiums and co-ops were recorded at a seasonally adjusted annual rate of 680,000 units in October, down 2.9% from 700,000 in September and 5.6% from a year ago. year. The median price of existing condominiums was $ 296,700 in October, an annual increase of 8.7%.

“In an era when mortgage rates are still low, buying and securing a home is a wise investment,” said NAR President Leslie Rouda Smith, Realtor® of Plano, Texas, and Associate Broker at Dave Perry-Miller Real Estate in Dallas. . “NAR will strive to make homeownership accessible to anyone who wants to pursue one of the key elements of the American Dream. “

Regional distribution

Existing home sales in the Northeast fell 2.6% in October, recording an annual rate of 750,000, a decrease of 13.8% from October 2020. The median price in the Northeast was of $ 379,100, up 6.4% from a year ago.

Sales of existing homes in the Midwest rose 4.2% to an annual rate of 1,500,000 in October, down 6.3% from a year ago. The median price in the Midwest was $ 259,800, a jump of 7.8% from October 2020.

Sales of existing homes in the South rose 0.4% in October, posting an annual rate of 2,780,000, down 3.5% from a year ago. The median price in the South was $ 315,500, a 16.1% increase from the previous year.

Existing home sales in the West have neither increased nor decreased from the previous month’s level, registering an annual rate of 1,310,000 in October, down 5.1% from a year ago . The median price in the West was $ 507,200, up 7.7% from October 2020.

The National Association of Realtors® is the largest trade association in the United States, representing over 1.5 million members involved in all aspects of the residential and commercial real estate industries.

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For local information, please contact the Local Association of Realtors® for Local Multiple Listing Services (MLS) data. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in the reporting methodology.

REMARK: NAR’s pending home sales index for October is expected to be released on November 29, and existing home sales for November will be released on December 22; check-out times are 10:00 a.m.ET.

Information on NAR is available at www.nar.realtor. This and other news releases are posted on the NAR Newsroom at www.nar.realtor/newsroom. The statistical data for this release, as well as other tables and surveys, are displayed in the “Research and Statistics” tab.


[i] Sales of existing homes, which include single-family homes, townhouses, condominiums, and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of AIS are not captured in the monthly series. NAR periodically reassesses home sales using other sources to assess overall trends in home sales, including sales not reported by MLS.

Existing home sales, based on closings, differ from the US Census Bureau series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it’s not uncommon for each series to move in different directions during the same month. Additionally, existing home sales, which account for over 90% of total home sales, are based on a much larger data sample – roughly 40% of multiple listing service data each month – and are typically not not subjected to large volumes the previous month. revisions.

The annual rate for a given month represents the total number of actual sales for a year if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to account for seasonal variations in resale activity. For example, the volume of home sales is normally higher in summer than in winter, mainly due to differences in weather conditions and family buying habits. However, seasonal factors cannot compensate for abnormal weather conditions.

Data collection on single-family homes began monthly in 1968, while data collection on condominiums began quarterly in 1981; the series were combined in 1999 when the monthly condominium data collection began. Before this period, single-family homes accounted for more than nine out of ten purchases. Historical comparisons of total home sales before 1999 are based on monthly sales of single-family homes, combined with the corresponding quarterly sales rate for condominiums.

[ii] Data on total inventory and monthly supply are available through 1999, while single-family home inventory and monthly supply are available through 1982 (prior to 1999, single-family home sales were over 90% of transactions and condos were only measured quarterly (basis).

[iii] The median price is the one where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed by a relatively low share of high-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in purchasing habits. Month-to-month comparisons do not compensate for seasonal changes, especially the timing of family shopping habits. Changes in the composition of sales can skew the median price data. Median and average prices from a year ago are sometimes revised in an automated process if additional data is received.

The national median price of condos / co-ops is often higher than the median price of single-family homes because condos are concentrated in higher cost housing markets. However, in any given area, single-family homes typically sell for more than condos, as NAR’s Metropolitan Area Quarterly Price Reports show.

[iv] Survey results represent owner-occupiers and differ from the monthly results reported separately from NAR’s Realtor Confidence Index, which includes all types of buyers. Investors are under-represented in the annual survey as survey questionnaires are mailed to the addresses of purchased properties and are generally not returned by absent owners. The results include both new and existing homes.

[v] Distressed sales (foreclosures and short sales), days on the market, first-time buyers, cash transactions and investors come from a monthly survey for the NAR Real Estate Agent Confidence Index, posted on nar.realtor.


        


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