Existing home sales in the U.S. unexpectedly increased in the month of October, according to a report released by the National Association of Realtors on Tuesday, with sales climbing to their highest rate in nearly a decade.
NAR said existing home sales rose by 2.0 percent to an annual rate of 5.60 million in October after jumping by 3.6 percent to a revised 5.49 million in September.
The increase surprised economists, who had expected existing home sales to drop by 0.9 percent to a rate of 5.42 million in October from the 5.47 million originally reported for the previous month.
With the unexpected increase, existing home sales rose to their highest rate since reaching 5.79 million in February of 2007.
"October's strong sales gain was widespread throughout the country and can be attributed to the release of the unrealized pent-up demand that held back many would-be buyers over the summer because of tight supply," said Lawrence Yun, NAR chief economist.
He added, "Buyers are having more success lately despite low inventory and prices that continue to swiftly rise above incomes."
The report said the median existing home price for all housing types in October was $232,200, down 1.3 percent from $235,300 in September but up 6.0 percent from $219,100 a year ago.
NAR also said there were 2.02 million existing homes available for sale at the end of October compared to 2.03 million available for sale at the end of September.
The unsold inventory represents 4.3-month supply at the current sales pace, down from 4.4 months in September.
Single-family home sales increased 2.3 percent to a rate of 4.99 million in October, while existing condominium and co-op sales were unchanged at a rate of 610,000.
The report also said existing home sales in the South and Midwest surged up by 2.8 percent and 2.3 percent, respectively.
Existing home sales in the Northeast also climbed by 1.4 percent, while existing home sales in the West rose by 0.8 percent.
Wednesday morning, the Commerce Department is scheduled to release its report on new home sales in the month of October.
New home sales are expected to edge down to a rate of 590,000 in October after climbing by 3.1 percent to a rate of 593,000 in September.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News
