Existing home sales ascend again in October
|Resales Continue to Roar
- The 4.3% monthly gain brings existing sales to a 6.85-million unit pace, well ahead of expectations and the fastest since 2006. Single-family sales rose 4.1%, while condo sales increased 5.8%. Sales continue to be bolstered by low mortgage rates and the need for more space to adapt to new COVID norms.
- Inventories dropped to 1.42million, 19.8% below year ago levels. Month’s supply fell to 2.5 months, the lowest on record.
Low Supply and Affordability Remain a Limitation
Home prices are soaring thanks to scarce supply and robust demand. Median single-family home price rose 16% to $317.7K.
While we expect this strong pace of sales to continue,the pace of improvement may soon slow. Pending home sales, which lead existing sales by a month or two, fell 2.2% in September. Similarly, mortgage purchase applications have started to come back down from the lofty heights reached this summer.
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