The Mendosa-Balboni Team would like to share that according to a report from the National Association of Realtors, the fall real estate market has gained momentum with an increasing pace of existing home sales regardless of a struggle due to the deficit of available supply.
The total number of existing home sales of single-families, townhomes, condos and co-ops has increased by 2.0% in the month of October to an adjusted rate of 5.48 million. After this increase sales are at their best pace since this past June, but are still lower than last year at this time by 0.9%.
Lawrence Yun, NAR chief economist, says sales activity in October picked up for the second straight month, with increases in all four major regions. “Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home,” he said. “While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.”
Added Yun, “The residual effects on sales from Hurricanes Harvey and Irma are still seen in parts of Texas and Florida. However, sales should completely bounce back to their pre-storm levels by the end of the year, as demand for buying in these areas was very strong before the storms.”
The median existing home price for all types of property was up by 5.5% this past October over that of last year. This price increase is the 68th month in a row of year-over-year gains.
Housing inventory by the end of October had diminished 3.2% and is now 10.4% lower than a year ago. This has also been the 29th month in a row for the decreasing amount of available housing levels. The total unsold housing stock is at a 3.9 month supply currently which is down from 4.4 months at this time in 2016. Properties also remained on the market for typically 34 days this October which has decreased from the 41 days from a year ago. Additionally, 47% of the the homes sold in October were on the market for less than one month.