Existing-home sales up, NAR reports

Existing-home sales are up, both in volume and cost.

The National Association of Realtors® reported that existing-home sales reached 5.48 million in October, an increase of 2 percent from September. While the increase does represent a monthly increase, it is still a decrease year-to-year of 0.9 percent. Inventory dropped 10.4 percent year-to-year, and 3.2 percent month-to-month, with 1.8 million homes on the market. Inventory has dropped year-to-year for the past 29 months, NAR reported.

The median sales price was $247,000, an increase of 5.5 percent year-to-year. Prices have risen year-to-year for the past 29 months. Properties continue to move briskly off the market, lasting an average of 34 days, the same as September, and down 7 days year-to-year.

“Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home,” says Lawrence Yun, chief economist of NAR. “While the housing market gained a little more momentum last month, sales are still below year-ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.”

Thirty-two percent of buyers were first-time, up 3 percent from the previous month, but down 1 percent year-to-year.

In the Northeast, existing-home sales increased 4.2 percent, hitting 740,000, mirroring last year. The median home price hit $272,800, an increase of 6.6 percent year-to-year.

Across the country, 20 percent of sales were all-cash, which is higher than the percentage PAR found in the Welcome Home survey for the third quarter for Pennsylvania homebuyers.