"Constrained inventory" continues to be a key factor in the housing market as home sales declined for the second month in a row, according to the National Association of Realtors. Existing home sales in October came in at 5.12 million (seasonally adjusted), down from 5.29 million in September. Sales were 6.0 percent higher than in October 2012 (4.83 million units). From the NAR report:
All-cash sales comprised 31 percent of transactions in October, down from 33 percent in September; they were 29 percent in October 2012. Individual investors, who account for many cash sales, purchased 19 percent of homes in October, unchanged from September; they were 20 percent in October 2012. Last month, two-thirds of investors paid cash.
Single-family home sales fell 4.1 percent to a seasonally adjusted annual rate of 4.49 million in October from 4.68 million in September, but are 5.2 percent above the 4.27 million-unit pace in October 2012. The median existing single-family home price was $199,500 in October, up 12.7 percent from a year ago.
Existing condominium and co-op sales rose 3.3 percent to an annual rate of 630,000 units in October from 610,000 in September, and are 12.5 percent above the 560,000-unit level a year ago. The median existing condo price was $199,200 in October, which is 13.1 percent above October 2012.
Regionally, existing-home sales in the Northeast declined 2.9 percent to an annual rate of 670,000 in October, but are 11.7 percent higher than October 2012. The median price in the Northeast was $247,300, up 7.4 percent from a year ago.
Existing-home sales in the Midwest slipped 1.6 percent in October to a pace of 1.22 million, but are 8.0 percent above a year ago. The median price in the Midwest was $154,700, which is 9.3 percent higher than October 2012.
In the South, existing-home sales declined 1.9 percent to an annual level of 2.06 million in October, but are 7.3 percent above October 2012. The median price in the South was $171,500, up 12.9 percent from a year ago.
With constrained inventory, existing-home sales in the West fell 7.1 percent to a pace of 1.17 million in October, and are 0.8 percent below a year ago. The median price in the West was $284,800, up 17.2 percent from October 2012.
Read the full release here.
Filed under: mortgages, economic indicators, supply and demand, home sales, Pending Home Sales Index, Lawrence Yun, National Association of Realtors, Freddie Mac, home prices, inventory, exisiting home sales, nar, housing supply