Existing Home Sales Down 3.4% in October, Yet Still up 3.9% YOY

Washington, DC, November 23, 2015—With mortgage rates remaining below 4% for the third straight month, existing-home sales in October were at a healthy pace but failed to keep up with September's jump, according to the National Association of Realtors.

All four major regions saw no gains in sales in October.

Total existing home sales fell 3.4% to a seasonally adjusted annual rate of 5.36 million in October from 5.55 million in September. Despite last month's decline, sales are still 3.9% above a year ago (5.16 million).

Lawrence Yun, NAR chief economist, says a sales cool-down in October was likely given the pullback in contract signings the last couple of months. "New and existing-home supply has struggled to improve so far this fall, leading to few choices for buyers and no easement of the ongoing affordability concerns still prevalent in some markets," he said. "Furthermore, the mixed signals of slowing economic growth and volatility in the financial markets slightly tempered demand and contributed to the decreasing pace of sales."

Adds Yun, "As long as solid job creation continues, a gradual easing of credit standards even with moderately higher mortgage rates should support steady demand and sales continuing to rise above a year ago."

The median existing-home price for all housing types in October was $219,600, which is 5.8% above October 2014 ($207,500). October's price increase marks the 44th consecutive month of year-over-year gains.

Total housing inventory at the end of October decreased 2.3% to 2.14 million existing homes available for sale, and is now 4.5% lower than a year ago (2.24 million). Unsold inventory is at a 4.8-month supply at the current sales pace, up from 4.7 months in September.

The percent share of first-time buyers increased to 31% in October, up from 29% both in September and a year ago.