October National Market Update

If you’ve been waiting for a shift in the market, October brought some encouraging news! Existing-home sales rose 3.4% from September, with gains across all four major U.S. regions. Year-over-year, sales increased in the South, Midwest, and West, while the Northeast held steady.

Higher inventory levels and a growing economy are helping fuel this uptick in activity, though elevated mortgage rates continue to be a hurdle for many buyers. The median home price also climbed 4.0% compared to last year, signaling ongoing demand.

Here’s a closer look at what’s driving these trends and what they could mean as we wrap up the year.

Existing-home sales rose in October, according to the National Association of REALTORS®. Sales improved in all four major U.S. regions. Year-over-year, sales elevated in three regions but were unchanged in the Northeast.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – expanded 3.4% from September to a seasonally adjusted annual rate of 3.96 million in October. Year-over-year, sales progressed 2.9% (up from 3.85 million in October 2023).

"The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” said NAR Chief Economist Lawrence Yun. "Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”

Total housing inventory registered at the end of October was 1.37 million units, up 0.7% from September and 19.1% from one year ago (1.15 million). Unsold inventory sits at a 4.2-month supply at the current sales pace, down from 4.3 months in September but up from 3.6 months in October 2023.

The median existing-home price for all housing types in October was $407,200, up 4.0% from one year ago ($391,600). All four U.S. regions registered price increases.

"The ongoing price gains mean increasing wealth for homeowners nationwide,” Yun added. "Additional inventory and more home building activity will help price increases moderate next year.”

REALTORS® Confidence Index

According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 29 days in October, up from 28 days in September and 23 days in October 2023.

First-time buyers were responsible for 27% of sales in October, up from 26% in September but down from 28% in October 2023. NAR's 2024 Profile of Home Buyers and Sellers – released earlier this month – found that the annual share of first-time buyers was 24%, the lowest ever recorded.

Cash sales accounted for 27% of transactions in October, down from 30% in September and 29% in October 2023.

Individual investors or second-home buyers, who make up many cash sales, purchased 17% of homes in October, up from 16% in September and 15% in October 2023.

Distressed sales – foreclosures and short sales – represented 2% of sales in October, unchanged from last month and the previous year.

Mortgage Rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.78% as of November 14. That's down from 6.79% one week ago and 7.44% one year ago.

Single-family and Condo/Co-op Sales

Single-family home sales accelerated 3.5% to a seasonally adjusted annual rate of 3.58 million in October, up 4.1% from the prior year. The median existing single-family home price was $412,200 in October, up 4.1% from October 2023.

Existing condominium and co-op sales extended 2.7% in October to a seasonally adjusted annual rate of 380,000 units, down 7.3% from one year ago (410,000). The median existing condo price was $360,300 in October, up 1.6% from the previous year ($354,800).

Regional Breakdown 

Existing-home sales in the Northeast in October grew 2.2% from September to an annual rate of 470,000, identical to October 2023. The median price in the Northeast was $472,900, up 7.6% from last year.

In the Midwest, existing-home sales bounced 6.7% in October to an annual rate of 950,000, up 1.1% from the prior year. The median price in the Midwest was $305,300, up 7.2% from October 2023.

Existing-home sales in the South climbed 2.9% from September to an annual rate of 1.77 million in October, up 2.3% from one year before. The median price in the South was $361,200, up 0.9% from one year earlier.

In the West, existing-home sales increased 1.3% in October to an annual rate of 770,000, up 8.5% from a year ago. The median price in the West was $627,700, up 4.4% from October 2023.

Krista Freshour

Realtor

865-776-9608

Information provided by National Association of Realtors