Existing-Home Sales Increase in October
Existing-home sales continue to climb as housing inventory dwindles in the U.S. For the fifth straight month, sales increased in October, according to the National Association of Realtors. The seasonally adjusted rate of 6.85 million is 4.3% ahead of September, 26.6% above October 2019 and at its highest pace in 14 years.
"The surge in sales in recent months has now offset the spring market losses," said Lawrence Yun, NAR chief economist in a release. "With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market's growth to continue into 2021." He predicted sales would increase 10% in 2021.
However, with the sharp increase in sales comes the record low in home inventory. At the current sales pace, there's a 2.5-month supply, down 2.7% from September.
Nearly three-fourths of homes sold in October were on the market for less than a month. Regionally, existing-home sales climbed in the Northeast, Midwest, South and West. All four regions saw double-digit jumps from October 2019.
Economists predicted sales would decline 1.2% in October, states Reuters.
-Michael Miller, NACM managing editor