Sales of existing homes posted a 2% gain in October but remain 0.9% below where they were a year earlier
Sales of existing homes posted a 2% gain in October but remain 0.9% below where they were a year earlier.
New figures from the National Association of Realtors reveal a seasonally adjusted annual rate of 5.48 million homes, up from 5.37 million (downwardly revised) in September but down from the 5.51 million of October 2016.
"While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated," said NAR chief economist Lawrence Yun.
The lag is frustrating as the labor market and wage growth is strengthening along with the wider economy.
Total inventory was 1.8 million in October, down 3.2% from September and down 10.4% from the 2.01 million a year ago. Unsold inventory represented just 3.9 months of supply at current pace, down from 4.4 months in October 2016.
Prices are facing upward pressure from the limited choice with the median price for all housing types rising 5.5% year-over-year to $247,000.
Homes are selling faster, with the average days on market falling to 34 last month compared to 44 a year earlier.
"Listings – especially those in the affordable price range – continue to go under contract typically a week faster than a year ago, and even quicker in many areas where healthy job markets are driving sustained demand for buying," said Yun. "With the seasonal decline in inventory beginning to occur in most markets, prospective buyers will likely continue to see competitive conditions through the winter."
New figures from the National Association of Realtors reveal a seasonally adjusted annual rate of 5.48 million homes, up from 5.37 million (downwardly revised) in September but down from the 5.51 million of October 2016.
"While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated," said NAR chief economist Lawrence Yun.
The lag is frustrating as the labor market and wage growth is strengthening along with the wider economy.
Total inventory was 1.8 million in October, down 3.2% from September and down 10.4% from the 2.01 million a year ago. Unsold inventory represented just 3.9 months of supply at current pace, down from 4.4 months in October 2016.
Prices are facing upward pressure from the limited choice with the median price for all housing types rising 5.5% year-over-year to $247,000.
Homes are selling faster, with the average days on market falling to 34 last month compared to 44 a year earlier.
"Listings – especially those in the affordable price range – continue to go under contract typically a week faster than a year ago, and even quicker in many areas where healthy job markets are driving sustained demand for buying," said Yun. "With the seasonal decline in inventory beginning to occur in most markets, prospective buyers will likely continue to see competitive conditions through the winter."
