Existing Home Sales Lose Little Strength in October
Sales of existing single-family homes held virtually steady in October at a seasonally adjusted annual rate of 6.75 million, which was just a 0.1% tick down from an upwardly revised level of 6.76 million in September, the National Association of Realtors® (NAR) reported last week.
As with new home sales, the resale market was driven by mortgage interest rates, which have persisted at below-6% levels for longer than expected. “Of course all of the other market fundamentals remain sound,” said David Lereah, the association’s chief economist, “so we should only see a modest decline from record home sales this year if mortgage interest rates generally rise.”
NAR President Al Mansell, who is CEO of Coldwell Banker Residential Brokerage in Salt Lake City, said a growing population, an improving economy and generally favorable housing affordability suggest that “there is no end in sight to the current housing expansion. Although sales are likely to ease from record levels, they’ll remain at a high threshold in years to come and continue to supply long-term gains.”
Regionally, existing home sales were up 3.7% in the South and down 1.3% in the Northeast, 2.8% in the Midwest and 3.6% in the West.