Median existing-home sales price climbed 3.4% from one year ago
Upper Cumberland – Existing-home sales dropped 4.1% (down 14.6% from one year ago) in October to a seasonally adjusted annual rate of 3.79 million, according to a report by the National Association of Realtors (NAR).
The median existing-home sales price climbed 3.4% from one year ago to $391,800 – the fourth consecutive month of year-over-year price increases while inventory of unsold existing homes grew 1.8% from the previous month to 1.15 million at the end of October. That is the equivalent of 3.6 months’ supply at the current monthly sales pace.
In the South, sales dropped 7.1% from September (as was the case in the Northeast and the West) to an annual rate of 1.69 million in October. That is a decline of 14.6% from the previous year.
The median price in the South was up 3.5% from last year to $357,700. Sales tumbled 14.6% nationally year-over-year (down from 4.44 million in October 2022).
“Prospective homebuyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation,” said NAR Chief Economist Lawrence Yun. “Multiple offers, however, are still occurring, especially on starter and mid-priced homes, even as price concessions are happening in the upper end of the market.”
Total existing-home sales including single-family homes, townhomes, condominiums and co-ops fell 4.1% from September to a seasonally adjusted annual rate of 3.79 million in October. Single-family home sales declined to a seasonally adjusted annual rate of 3.38 million in October, down 4.2% from 3.53 million in September and 14.6% from the previous year.
The median existing, single-family home price was $396,100 in October, up 3% from October 2022.
“While circumstances for buyers remain tight, home sellers have done well as prices continue to rise year-over-year, including a new all-time high for the month of October,” Yun said. “In fact, a typical homeowner has accumulated more than $100,000 in housing wealth over the past three years.”
Total housing inventory registered at the end of October was 1.15 million units, up 1.8% from September but down 5.7% from one year ago (1.22 million). Unsold inventory sits at a 3.6-month supply at the current sales pace, up from 3.4 months in September and 3.3 months in Oct. 2022.
“Fortunately, mortgage rates have fallen for the third straight week, stirring up buying interest,” Yun added. “Though limited now, expect housing inventory to improve after this winter and heading into the spring. More inventory will result in more home sales.”
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