–Existing Home Sales Rise by 4.3% to a 6.85 Million Rate, High Since Feb 2006
By Kevin Kastner
WASHINGTON (MaceNews) – U.S. existing home sales surged again in October are now at the highest point since February 2006.
National Association of Realtors Chief Economist Lawrence Yun said the data are “amazing” and noted that 2020 sales through the first 10 months of 2020 have already surpassed the 2019 full-year total.
Data released Thursday by the National Association of Realtors showed that overall existing home sales rose by 4.3% to a 6.85 million annual rate in October, well above expectations for a 6.47 million rate and up 26.6% from a year ago.
Single-family existing home sales rose by 4.1%, while condo sales were up 5.5%. The year/year rates were sharply higher for both.
There were sales gains in all four regions of the country, led by the Midwest region.
Inventory of homes for sales fell by 2.7% in October and was down 19.8% from a year ago due to the very brisk pace of sales.
When combined with the sales gain, the month’s supply plunged to 2.5 months from 2.7 months in September and 3.9 months a year ago.
The median sales price of existing home rose by 0.5% in October to $313,000, up 15.5% year/year.
Yun repeated that an increased supply of homes, especially at the lower price end, will allow more buyers to access the market at more affordable prices points.
New home construction for single-family homes surged in October, based on data released on Wednesday, which should lift the supply of new homes for sale and allow current owners to trade up and put their existing homes on the market.
Existing Home Sales
Source: National Association of Realtors
Released earlier on Thursday, initial jobless claims rose by 31,000 to 742,000 in the November 14 employment survey week, well below the 797,000 level in the October 17 survey week, but well above the pre-COVID levels.
Analysts had expected 710,000 claims in the current week.
The four-week moving average fell by 13,750 to 742,000 in the week, as the level in the October 17 week rolled out of the equation. This marks the 16th straight decline.
The continuing claims level fell by 429,000 to 6.372 million in the November 7 week, as benefits continued to expire, the lowest point since the start of the pandemic.
Also released earlier Thursday, the Philadelphia Fed manufacturing index fell to 26.3 in November from 32.3 in October, in line with the Empire State data released on Monday. The data suggest more modest growth.
Other regional data will be released over the coming weeks prior to the national ISM readings in the first week of December.
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Contact this reporter: kevin@macenews.com.
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