U.S. Existing Homes Sales Rebounded in October

Sales of existing homes rebounded in October, increasing 3.4% m/m (+2.9% y/y) to 3.96 million (SAAR) after having fallen in both August and September. This was the first positive annual gain since July 2021. The effective 30-year mortgage interest rate continues to rise, increasing 60 basis points during October. The Action Economics Forecast Survey expected October sales of 3.90 million units. The sales figures are based on closings of sales signed over the past couple of months.

The median price of all existing homes (NSA) edged up 0.1% m/m (4.0% y/y) in October to $407,200 from an upwardly revised $406,700 (previously $404,500) in September. This was the first monthly gain in the past four months. The median price of an existing single-family home increased 0.2% m/m (4.1% y/y) to $412,200 in October from $411,400 in September (revised up from $409,000). The median price of condos and co-ops fell 0.6% m/m (+1.6% y/y) to $360,300 in October from $362,500 in September (revised up from $361,600).

Sales of existing homes rose in October in each of the four major regions. Sales in the Northeast increased 2.2% m/m (unchanged y/y), the first monthly gain in three months, to 470,000. Sales in the Midwest jumped 6.7% m/m (1.1% y/y), the largest monthly gain since February, to 950,000. Sales in the South gained 2.9 m/m (2.3% y/y) to 1.77 million after monthly declines in both August and September. Sales in the West increased 1.3% m/m (8.5% y/y) to 770,000.

The number of existing homes for sale (NSA) rose 0.7% m/m (19.1% y/y) to 1.37 million last month, offsetting a 0.7% decline in September. The supply of homes on the market at the current selling rate (NSA) inched down to 4.2 months from 4.3 months in September. This figure has generally risen since February. The record low in supply of 1.6 months was reached in January 2022. These figures date back to January 1999.

The data on existing home sales, prices and affordability are compiled by the National Association of Realtors. The data on single-family home sales extend back to February 1968. Total sales and price data and regional sales can be found in Haver's USECON database. Regional price and affordability data and national inventory data are available in the REALTOR database. Mortgage interest rates can be found in the WEEKLY database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.