Is the downturn finally over?
Existing-home sales across the US jumped by 2.9% in October over the same time in 2023, marking their first annual increase for over three years.
The National Association of Realtors (NAR) said Thursday that sales of existing homes improved in all four major US regions last month, hitting a seasonally adjusted annual clip of 3.96 million and rising by 3.4% compared with September.
Median existing-home sales prices were also up, rising for the 16th month in a row with a 4% year-over-year increase to $407,200. National inventory, meanwhile, ticked slightly upwards, increasing by 0.7% from September to 1.37 million – the equivalent of 4.2 months of supply.
Existing-home sales rose 3.4% in October. Sales improved in all four major U.S. regions. Year-over-year, sales elevated in three regions but were unchanged in the Northeast. https://t.co/yYgyAlry7W
— National Association of REALTORS® (@nardotrealtor) November 21, 2024
Is the US housing market about to take off?
NAR’s chief economist Lawrence Yun suggested that the US housing market may be at a turning point. “The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” he said in remarks accompanying the association’s release.
“Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”
Mortgage rates have crept back upwards in recent weeks after sliding during the summer – although at 6.78%, the average 30-year fixed-rate mortgage sits significantly below the 7.44% rate seen at the same time last year.
The Midwest saw the strongest acceleration in existing-home sales in October, recording a 6.7% month-over-month increase to an annual rate of 950,000. In the Northeast, sales ticked 2.2% higher, while the South registered a 2.9% jump over September. In the West, existing-home sales were 1.3% higher on a monthly basis and up 8.5% over the same time last year.
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