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

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.”

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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

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

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.”

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

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

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