MNI BRIEF: US October Existing Home Sales Slide 4.1% To 3.79M

U.S. sales of existing homes fell 4.1% to a seasonally adjusted annual rate of 3.79 million in October, the National Association of Realtors said Tuesday, below market expectations and the lowest sales activity since 2010. Sales slumped 14.6% from one year ago and are on track to be the worst in 30 years.

Still, the national median home price was up 3.4% from one year ago to USD391,800, the fourth consecutive month of year-over-year price increases. The average price increased 5.9%. "Multiple offers are still happening and this shows there is interest if inventory shows up," NAR chief economist Lawrence Yun told reporters, adding he expects mortgage rates to dip below 7% by the spring. (See: MNI INTERVIEW: Resilient Housing To Rebound As Rates Fall)

The inventory of unsold existing homes grew 1.8% from the previous month to 1.15 million at the end of October, equivalent to 3.6 months’ supply at the current sales pace. "Multiple offers are still happening in areas where inventory shows up," Yun said. “Though limited now, expect housing inventory to improve after this winter and heading into the spring. More inventory will result in more home sales.”