Dive Brief:
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More existing homes sold in October than in the same month a year ago, marking the highest resales pace of the year, according to the National Association of Realtors.
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This is the second consecutive month that resales have improved, but the first time since October 2013 that year-over-year numbers are up, the NAR reported last week.
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NAR’s chief economist, Lawrence Yun, attributed the strong showing to low interest rates and stabilizing price growth. and said the report “bodes well” for increasing resales in the coming months.
Dive Insight:
The 1.5% increase in combined resales of single-family homes, townhomes, condominiums, and co-ops was unexpected, given that inventory of homes for sale fell 2.6% at the end of October to its lowest level since March. And just last month, almost 60% of potential sellers of existing homes told a Redfin survey that they intend to hold onto their properties until they can list them for higher prices. “Buyer demand is there, but only at the right price,” Redfin Chief Economist Nela Richardson said at the time.
But last week’s NAR report showed that the median price of those homes rose by 5.5% when compared with October 2013 sales prices.
The conundrum: As housing inventory grows, sales prices tend to taper off.