NAR (The National Association of Realtors) has released a report stating that home sales have increased this fall after seeing a minor dip. Two of the four primary areas in the United States saw slight decreases, but overall the total number of sales of single-family homes, condos, townhomes and coops were up by 1.9% in the month of October. Additionally, sales were up by 4.6% over last year at this same time.
Lawrence Yun, NAR’s chief economist, said this sales increase is encouraging and he expects added growth in the coming months. “Historically-low interest rates, continuing job expansion, higher weekly earnings and low mortgage rates are undoubtedly contributing to these higher numbers,” said Yun. “We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”
Prices of Homes
Home prices continue to be escalating. The median price for homes had surged by 6.2% in October over that of last year. This now delineated the 92nd month in a row for home price gains.
Number of Days on Market
Homes were on the market for an average of 36 days in the month of October. This was an increase from 32 days in September and was actually the same amount of days as October of 2018. Forty six percent of homes that sold in October were on the market for less than one month.
Prices have been increasing but inventory levels were down in October. The number of available homes had decreased by 2.7% from September and was 4.3% lower than October of 2018. Available inventory hovers at a 3.9 month supply at the current pace and is down from 4.3 months as of last year at this same time.
“The issuance of more housing permits is a very positive sign and a good step toward more inventory,” said Yun, citing the latest data for housing starts. “In order to better counter and even slow the increase in housing prices, home builders will have to bring additional homes on the market.”