Rebecca Van Camp, a real estate broker, put a sign in front of a home in Idaho with a "Sold" sign.
The National Association of Realtors reported that sales of previously owned homes rose 0.8% in October to a rate of 6.34 million units. October sales were lower than October 2020. October of last year was a good month for the market.
This measure shows closed sales for existing single- family homes and condominiums in October, so contracts that were signed in August and September are likely to be included. The closing process can take up to two months.
The number of sales is expected to be the highest since 2006 with over 6 million.
Lawrence Yun, chief economist for the Realtors, said that sales remain very strong.
The increase in investors in the market is likely the result of soaring rents for single- family homes. In October, investors made up 18% of buyers, up from 15% in September and 12% in October of 2020. Cash buyers made up 24% of buyers. All cash is used by most investors.
First-time buyers made up 29% of sales compared to 32% a year ago. The share has been around 40%.
The supply of homes for sale continued to decrease. The number of homes available for sale at the end of October was lower than a year ago. The current sales pace has a 2.4-month supply. A balanced market is a 5 to 6 month supply.
The median price of an existing home was $353,900. That is higher than October 2020.
The sales of homes under $250,000 fell in the past year. The sales of homes priced between $750,000 and $1 million went up 25%. Sales of million-dollar homes were up 31%.
In October, buyers did not get a break from mortgage rates. They went up from the start of August to the end of September. According to Mortgage News Daily, the average rate on a 30-year fixed loan was 2.5% on August 3rd. By October 29th, it was 3.2%). The rate was 3.16% as of last Friday.
Sales of new homes in September increased by 14 percent from August. The low supply of existing homes for sale is making builders see strong demand. Some of the largest national builders have said that they are slowing sales due to supply chain and labor issues. They are concerned that they might not be able to deliver on time.
