Existing Home Sales Show an Increase
December 14, 2018
A report from the National Association of Realtors was recently shared that stated existing home sales have increased this fall for the first time in many months. An increase in activity was seen in three out of the four major areas across the United States.
Existing home sales of single families, condominiums, co-ops and townhomes had grown by 1.4% this October to an amount of 5.22 million. Sales are still 5.1% below what they were at this time last year, but the increase for the month has been a positive sign for the market.
Lawrence Yun, NAR’s chief economist, says increasing housing inventory has brought more buyers to the market. “After six consecutive months of decline, buyers are finally stepping back into the housing market,” he said. “Gains in the Northeast, South and West – a reversal from last month’s steep decline or plateau in all regions – helped overall sales activity rise for the first time since March 2018.”
The median existing home price for all property types has still continued to grow now for the 80th consecutive month with home prices up 3.8% over that of this time in 2017.
Inventory levels had decreased by the end of the month, but they were higher than this time last year. This has brought unsold inventory to a 4.4 month’s supply which is an increase from 3.9 months from last year at this time.
In the mortgage rate front, Freddie Mac has shared that the average commitment rate for a 30 year fixed rate mortgage is at 4.83% which is higher than 4.63% from just recently in September.
“As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully,” said Yun. “This allows for much more manageable, less frenzied buying conditions.”