Existing Home Sales unexpectedly increased in October, rising 0.8% to an annual adjusted rate of 6.34 million homes from an annualized rate of 6.29 million homes in September. Consensus estimates were for a decline to an annualized rate of 6.20 million homes.
On a year-over-year basis, sales fell 5.8% compared to October 2020’s reading of 6.73 million.
Total Housing Inventory
Total housing inventory declined 0.8% from September to 1.25 million homes. Unsold homes are down 12% over the past year. At the current sales pace, it would take a total of 2.4 months to clear the market, which is the same pace as in September. This means inventory remained tight in October as supply remains well off the six month supply that is typically maintained in a balanced market.
Time on Market
Time on market increased by one day during October to 18 days, with 82% of homes sold within the first month. The purchases were primarily by first-time buyers with 29% of sales going to first-timers compared to 32% in October 2020. Individual investors and second-home buyers purchased 17% of homes in October, which was a sharp increase from the 13% share held in September. Meanwhile, all-cash transactions amassed 24% of transactions compared to 19% in October 2020.
Pricing
The median home price increased 13.1% from October 2020 to $353,900, as total sales fell and inventory shrank.
