NAR released a summary of existing home sales data showing that October’s existing home sales is the first year over year gain since October 2013. Additionally, this was the highest annual sales pace since September 2013. October’s sales rose 1.5% from September 2014 and now are up 2.5% from a year ago October 2013.
The national median existing-home price for all housing types was $208,300 in October, up 5.5% percent from October 2013. October marks the 32nd successive year over year price gains.
Regionally, all four regions showed growth in prices, and the Midwest had the biggest gain of 6.8% from last year. The West was the only region to have a decline in home sales at 3.4% from a year ago.
October’s inventory figures increased by 5.2% from a year ago and it will take 5.1 months to move the current level of inventory. It takes approximately 63 days for a home to go from listing to a contract in the current housing market, up from last year when it took 54 days.
Housing starts need to pick up to keep home price gains to a more normal level which is needed during a time of slow wage growth. Slower home price growth and low mortgage rates should help buyers come back to the housing market. Sales since June have been above the 5 million pace which points to a healthy housing market next year.