Existing home sales fell nearly six percent in October to 4.43 million, according to a National Association of REALTORS report.
The drop was widespread. Existing home sales in the Midwest fell 5.3 percent from September to an annual rate of 1.08 million, down 25.5 percent from the previous year. The median home price in the Midwest was $274,500, up nearly 6 percent from October 2021. Existing home sales also declined in the South and in the West at 4.8 percent and 9.1 percent, respectively.
Single-family home sales fell to a seasonally-adjusted annual rate of 3.95 million in October, a 6.4 percent drop from 4.22 million in September and a 28.2 percent decrease from October 2021. According to NAR, the median existing home price for all housing types was $379,100 in October, a 6.6 percent increase from 12 months before as prices rose in all regions.
“More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher,” said NAR Chief Economist Lawrence Yun. “The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years.”
There were 1.22 million units of total housing inventory registered at the end of October, a fall of less than one percent from both September and October 2021. Unsold inventory is at a 3.3-month supply. “Inventory levels are still tight, which is why some homes for sale are still receiving multiple offers,” Yun said. “In October, 24 percent of homes received over the asking price. Conversely, homes sitting on the market for more than 120 days saw prices reduced by an average of 15.8 percent.”
New home sales increased 7.5 percent in October to 632,000, according to estimates from the U.S. Census Bureau and the Department of Housing and Urban Development. That figure is still 5.8 percent below the October 2021 estimate of 671,000.