From CNBC: 2024-11-21 10:00:01

A sharp drop in mortgage rates in October led to a 3.4% increase in sales of previously owned homes. The annualized rate of sales reached 3.96 million units, marking the first annual increase in over three years. Inventory increased by 19.1% from the previous year, with a 4.2-month supply available.

Despite rising prices, the housing market is showing signs of recovery. Lawrence Yun, NAR’s chief economist, believes the worst of the downturn may be over as job gains and economic growth drive housing demand. However, more inventory is needed to return to pre-Covid conditions.

The median price of an existing home sold in October was $407,200, a 4% increase from the year before. Tight supply continues to push prices up, with the higher end of the market experiencing more activity. First-time buyers made up 27% of sales, down from the previous year’s 28%.

A surge in potential buyers contacting agents occurred after the election, with Redfin’s demand index rising 17% year-over-year. Mortgage rates are currently at 7.05% for a 30-year fixed rate. Redfin’s economic research lead, Chen Zhao, is monitoring whether the post-election surge will lead to a steady improvement in pending sales.



Read more at CNBC: Home sales surged in October before mortgage rates jumped