U.S. existing home sales rise slightly, but prices fall

TRD New York /
Nov.November 21, 2011 03:14 PM

Sales of existing homes rose in October, but remained stuck at a low level, according to a report released today by the National Association of Realtors, which noted that contract failures played a large role in the stagnant market.

Existing sales increased 1.4 percent from September and 13.5 percent from October 2010 to a seasonally adjusted annual rate of 4.97 million units.

“Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales,” said Lawrence Yun, NAR’s chief economist. “A higher rate of contract failures has held back a sales recovery.”

One third of all NAR members reported contract failures, up from 18 percent in September and 8 percent last October, Yun said.

One of the positive factors is a continued decline in the inventory, which fell 2.2 percent to 3.33 million existing homes, which, at the current sales pace, represents an eight-month supply. Despite the shrinking inventory, median existing home prices also fell 4.7 percent from last October to $162,500 even as foreclosures comprised a smaller percentage of sales than last year.

The Northeast experienced a 5.1 percent drop in existing home sales, and was the only region where volume fell on a month-over-month basis. It also had the smallest improvement over October 2010 at just 1.4 percent, compared to 15 percent year-over-year increases elsewhere in the country. The median price fell 5.5 percent year-over-year in the Northeast, compared to 4.7 percent in the Midwest and 1.6 percent in the South and West. — Adam Fusfeld


Related Articles

arrow_forward_ios
(iStock)

Déjà vu: New home sales hit 14-year high in August

Déjà vu: New home sales hit 14-year high in August
Sales of existing homes in the U.S. hit a 14-year high last month, according to a new report. (iStock)

US home sales hit 14-year high

US home sales hit 14-year high
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
An acute demand for homes is driving building prices up (iStock, Pixabay)

Builders make hay as millennials hunt for homes

Builders make hay as millennials hunt for homes
(iStock)

Suburban housing market surged in August while Manhattan trailed

Suburban housing market surged in August while Manhattan trailed
Home sales plunged across South Florida in Q2

Home sales plunged across South Florida in Q2

Home sales plunged across South Florida in Q2
(iStock)

Here’s where resi prices fell the most in Miami in Q2

Here’s where resi prices fell the most in Miami in Q2
Homeowners in redlined areas gained less equity over the past 40 years, exacerbating the wealth gap for blacks (iStock)

Homeowners gained far less equity in formerly redlined areas: study

Homeowners gained far less equity in formerly redlined areas: study
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...