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21.11.2024

U.S. existing-home sales surge 3.4 per cent in October

The National Association of Realtors (NAR) reported on Thursday that the U.S. existing home sales surged by 3.4 per cent m-o-m to a seasonally adjusted rate of 3.96 million in October from a downwardly revised 3.83 million (from 3.84 million) in September. This marked the first monthly gain in existing home sales in three months.

Economists had expected home re-sales to accelerate to a 3.93 million-unit pace last month.

In y-o-y terms, existing-home sales increased 2.9 per cent in October. This was the first annual advance since July 2021 (+1.8 per cent y-o-y).

According to the report, all four major regions – the Midwest (+6.7 per cent m-o-m), South (+2.9 per cent m-o-m), Northeast (+2.2 per cent m-o-m), and West (+1.3 per cent m-o-m), - posted gains in existing-home sales on a m-o-m basis.

In y-o-y terms, existing-home sales increased in the West (+8.5 per cent), South (+2.3 per cent) and Midwest (+1.1 per cent) but were unchanged in the Northeast (flat m-o-m). 

Over the reviewed period, the median existing-home price for all housing types climbed 4.0 per cent y-o-y to $407,200, reflecting advances in prices in all four U.S. regions. This was the 16th straight month of year-over-year gains in median existing-home price.

Single-family home sales came in at a seasonally-adjusted annual rate of 3.58 million in October, up 3.5 per cent m-o-m and 4.1 per cent y-o-y. Meanwhile, existing condominium and co-op sales were recorded at a seasonally-adjusted annual rate of 380,000 units in October, up 2.7 per cent m-o-m and but down 7.3 per cent y-o-y.

Commenting on the latest data, Lawrence Yun, NAR chief economist, noted that the worst of the downturn in home sales could be over, with increasing inventory leading to more transactions. “Additional job gains and continued economic growth appear assured, resulting in growing housing demand,” he added. Yun also suggested that additional inventory and more home-building activity will help price increases moderate next year.

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