Existing home sales continued declining in October, falling for the ninth straight month. All four major U.S. regions registered month-over-month and year-over-year declines, according to the National Association of REALTORS.
The NAR’s latest report showed total existing-home sales fell 5.9% from September to a seasonally adjusted annual rate of 4.43 million in October. Year-over-year, sales dropped by 28.4% (down from 6.19 million in October 2021). This includes completed transactions for single-family homes, townhomes, condominiums and co-ops.
“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.”
The median existing-home sales price rose to $379,100, an increase of 6.6% from the previous year.
Total housing inventory also fell for the third consecutive month to 1.22 million at the end of October. This equals 3.3 months’ supply at the current monthly sales pace.
Yun said that since inventory levels are so slim, some homes for sale are still receiving multiple offers. In October, 24% of homes received over the asking price.
But the homes sitting on the market for more than 120 days saw prices reduced by an average of 15.8%, the data showed.
First-time buyers accounted for 28% of sales in October, down from 29% in both September 2022 and October 2021.
Regional data showed that:
- Northeast sales were down 6.6% from September and 23% from October 2021.
- Midwest sales fell 5.3% from the previous month and 25.5% from the prior year.
- Sales in the South dropped 4.8% in October from September and 27.2% from this time last year.
- Sales in the West saw the highest drop—9.1% from September and down 37.5% from one year ago.