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Existing-home sales in the Midwest and the South have registered an uptick for the month of October, says the National Association of Realtors’s (NAR) housing stat. Sales in the North and the West, on the other hand, have suffered a decline. All four regions have, however, sold more homes compared to the numbers they sold a year ago.
Total existing-home sales (single-family homes, townhomes, co-ops, and condos) have come up to 5.46 million in October, a rise from September’s 5.38 million (calculations based on seasonally adjusted annual rate). This marks an increase of 1.9%%. The year-over-year overall sales have risen by 4.6%.
Lawrence Yun, NAR’s chief economist, is sanguine about the prospects of the housing market. He feels that the low-interest rates/mortgage rates, job growth, and higher earnings are jointly contributing to the numbers. Revisiting his concern regarding the housing inventory, Yun feels that the momentum should continue provided buyers are not hindered by paltry inventory.
The NAR data further reveals that the median existing-home price stands at $270,900 for October, spread over all the housing types. This figure marks an upswing of 6.2%, calculated year-over-year. It is worth noting that this, by the way, makes it 92 consecutive months of year-over-year gains.
The NAR data reveals that the total housing inventory, sitting at 1.77 million at October-end, has declined 2.7% from September-end. It is a decrease of 4.3% compared to year-over-year (the figure was 1.85 million in October ‘18”). Unsold inventory has breached the 4.0% mark, coming down to 3.9-month at October end. It is a negative shift from September’s 4.1-month and also from the 4.3-month (year-over-year) recorded in October ‘18’.
The Days on Market for October (36 days) has jumped in surplus of 10%, compared to the Days on Market for September (32 days).
31% of sales can be put down to the First Home Buyers in October. This is less than what it was in September (33%) and equal to the numbers recorded in October 2018. The annual share of FHBs, according to the NAR’s 2019 Profile of Home Buyers and Sellers, is 33%.
Studying NAR data for different regions
The existing-home sales have registered both kinds of curve; two regions showing a positive trend and two of them a negative ones. Year-over-year, they have all done well. The median home prices, measured year-over-year, also show that all the 4 regions have been gainers, the West being the strongest gainer.
For the Northeast, existing-home sales in October have fallen by 1.4% to an annual rate of 690,000. The figure represents nil change year-over-year. The median Price, says the NAR data, has increased by 5.7% year-over-year to stand at $296,700.
Existing-home sales in the Midwest have come up by 1.6% compared to September, standing at an annual rate of 1.29 million in October. The year-over-year increase is 2.4%. The median price has shot up by 6.7% over the last year to come up to $209,900.
The South has also put up a bold show. Its existing-home sales for October have shot up by 4.4% (the annual rate being 2.35 million for October). This is an increase of 7.8% measured year-over-year. The median price in the South stands at $234,900, a rise of 6.0%, year-over-year.
The existing-home sales in the West have come down by 0.9%. At 1.13 million, it is still a 3.7% increase, measured year-over-year. The median price in the West stands at $410,700, an uptick of 7.8% year-over-year.
Single-family and Condo/Co-op Sales
The single-family home sales stand at 4.87 million (seasonally adjusted rate) for October, up by 2.1% from the numbers recorded in September 2019. This is also 5.4% above the October 2018 figures (4.62 million). The median home price for the single-family homes declares the NAR data, stands at $273,600 in October, reflecting an uptick of 6.2% year-over-year.