Existing-home sales ascended in October for the second straight month and eclipsed June’s cyclical sales peak to become the highest annualized pace in nearly a decade, according to the National Association of Realtors®. All major regions saw monthly and annual sales increases in October.
Total existing-home sales , which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, grew 2.0 percent to a seasonally adjusted annual rate of 5.60 million in October from an upwardly revised 5.49 million in September. October’s sales pace is 5.9 percent above a year ago and surpasses June’s pace as the highest since February 2007.
Lawrence Yun, NAR chief economist, says the wave of sales activity the last two months represents a convincing autumn revival for the housing market. “October’s strong sales gain was widespread throughout the country and can be attributed to the release of the unrealized pent-up demand that held back many would-be buyers over the summer because of tight supply,” he said. “Buyers are having more success lately despite low inventory and prices that continue to swiftly rise above incomes.”
Existing-Home Sales by Housing Type
Single-family home sales increased 2.3 percent to a seasonally adjusted annual rate of 4.99 million in October from 4.88 million in September, and are now 6.6 percent above the 4.68 million pace a year ago. The median existing single-family home price was $233,700 in October, up 5.9 percent from October 2015.
Existing condominium and co-op sales were at a seasonally adjusted annual rate of 610,000 units in October (unchanged from September and a year ago). The median existing condo price was $220,300 in October, which is 6.2 percent above a year ago.
Existing-Home Sales by Region
October existing-home sales in the Northeast climbed 1.4 percent to an annual rate of 750,000, and are now 1.4 percent above a year ago. The median price in the Northeast was $255,500, which is 2.9 percent above October 2015.
In the Midwest, existing-home sales grew 2.3 percent to an annual rate of 1.36 million in October, and are now 6.3 percent above a year ago. The median price in the Midwest was $181,500, up 5.8 percent from a year ago.
Existing-home sales in the South in October rose 2.8 percent to an annual rate of 2.22 million, and are now 4.7 percent above October 2015. The median price in the South was $202,300, up 7.4 percent from a year ago.
Existing-home sales in the West increased 0.8 percent to an annual rate of 1.27 million in October, and are now 10.4 percent higher than a year ago. The median price in the West was $345,800, up 7.8 percent from October 2015.