MNI BRIEF: US Existing Home Sales Beats Expectations In Oct
MNI (WASHINGTON) - U.S. sales of existing homes grew 3.4% to a seasonally adjusted annual rate of 3.96 million in October, the National Association of Realtors said Thursday, edging above market expectations. Sales are up 2.9% from a year ago, the first year-over-year increase in more than three years.
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” said Lawrence Yun, NAR chief economist. “Additional job gains and continued economic growth appear assured, resulting in growing housing demand."
The national median home price was up 4.0% from one year ago to USD407,200, the 16th consecutive month of year-over-year price increases. Median home prices were up a tenth of a percentage point from September.
"Maybe the mortgage rate will go back down towards 6%, but I think that's about it. We are not going to return to a 3%, 4%, 5% mortgage rate," Yun said, noting that President-elect Donald Trump's deportation proposals add uncertainty to homebuilding. The inventory of unsold existing homes edged higher by 0.7% from the prior month to 1.37 million at the end of October, or the equivalent of 4.2 months’ supply at the current monthly sales pace.