Realtor.com reports, "Sales of previously owned homes rose in October following a brief dip in mortgage rates, and posted their first year-over-year gains since 2021.
Total existing-home sales increased 3.4% from September, to a seasonally adjusted annual rate of 3.96 million last month, the National Association of Realtors® reported on Thursday. The October sales figure, which excludes new construction, represented a 2.6% gain from one year ago.
Median home prices continued to rise on an annual basis last month, increasing 4% from October 2023, to $407,200. It marked the 16th consecutive month of year-over-year price increases.
The annual gain in home sales was the first seen since July 2021. However, the year-over-year gain was boosted by the low number of sales a year earlier, when mortgage rates reached their recent peak of nearly 8% in October 2023.
Rates on 30-year fixed mortgages averaged 6.43% last month, after reaching a two-year low of 6.18% in September. Home sales, defined by NAR as completed transactions, often take weeks or months to complete, and the October bump may reflect a rush to take advantage of the lower rates seen in September.
On the other hand, the uptick could signal a thawing in the market, as buyers take advantage of a rising supply of homes for sale, and a strong economy powers demand.
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” said 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.”"
Source: Realtor.com
Written by: Keith Griffith
Published: November 21, 2024
Posted by Grossman & Jones Group on
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