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Existing home sales decline again in October
Existing home sales declined 5.9 percent in October to a seasonally-adjusted annualized rate of 4.4 million units, marking the ninth straight month of declining sales and representing a 28.4 percent decrease in sales compared to last year. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the data in the latest Macro Data Flash report.
“The median home price declined for a fourth straight month, following typical seasonal patterns,” said Long “High mortgage rates continue to sideline potential homebuyers. According to the National Association of Realtors properties typically remained on the market 21 days in October, 2 days longer than in September.”
Long noted that although “the inventory to sales ratio did rise slightly in October,” the ratio is only half its usual level.
"Low inventory has helped buoy prices even while interest rates rose this year,” added Long. “Median home price declined in seasonal fashion last month, but the year-over-year price hit a record 128 straight months with year-over-year growth.”
Sales fell in all four regions with a 9.1 percent decline in the West followed by the Northeast (-6.6 percent), the Midwest (-5.3 percent), and the South (-4.8 percent).
Long concluded by saying that even though the economy is generally faring better, “the housing recession shows no signs of ending soon.”
For more economic updates from NAFCU's award-winning research team, view all of NAFCU's Macro Data Flash reports.