The median price of homes sold in October rose 13% from a year earlier, the lowest growth rate since December 2020. Refin put the median home price at $378,700 during the month, according to a new report. October marked the 15th consecutive month of double-digit price gains.
Seasonally-adjusted closed home sales and new listings of homes for sale both fell from a year earlier, by 8% and 11% respectively. Overall the housing market experienced fairly typical seasonal cooling in October. However, relief for homebuyers may be short-lived as pending sales rose 3% from September and early signals of demand are picking back up again in the first weeks of November.
“The severe lack of inventory is restricting home sales,” said Redfin Chief Economist Daryl Fairweather. “Even though plenty of people bought homes last year, many homebuyers waited while the pandemic went from bad to worse and remote-work policies were finalized. The homebuyers who are just beginning their search are finding that the well has run dry. But I am hopeful that as it becomes easier to get building materials, we will finally have a strong year for new construction in 2022. That’s what the market needs more than anything.”
Seasonally-adjusted home sales in October were down 8% from a year earlier, the largest decline in 16 months. Home sales fell in 76 of the 85 largest metro areas Redfin tracks. Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—fell 19% year over year in October, on par with recent months.
The typical home that sold in October went under contract in 21 days—more than a week faster than a year earlier, when homes sold in a median 29 days, but up three days from the record low of 15 days in June.