October's 3.4% Growth Breaks Three-Year Sales Slump

October's 3.4% Growth Breaks Three-Year Sales Slump

In October, existing-home sales in the U.S. increased by 3.4% from the previous month, reaching a seasonally adjusted annual rate of 3.96 million. This marks a 2.9% rise compared to October 2023 — the first annual gain since July 2021. The National Association of Realtors (NAR) attributes this uptick to growing inventory and sustained economic growth, suggesting a potential end to the downturn in home sales. Additionally:

• Regional Growth: All U.S. regions saw sales increases.

• Inventory Levels: Higher sales are linked to increased housing inventory.

• Economic Factors: Job growth and economic stability drive housing demand.

• Mortgage Rates: High rates challenge buyers but may stabilize soon.

Ralph’s Take

Optimism is growing that the housing market downturn may be easing, but challenges like high mortgage rates and limited inventory still affect affordability and buyer activity. While recent data is promising, recovery depends on economic growth and improved affordability. It's important to note that Westchester County's home inventory grew at a slower pace than the national average this year.