U.S. Home Sales See First Annual Growth Since 2021

October sales rose 2.9% year-over-year, driven by increased inventory and easing mortgage rates, though affordability challenges persist.

Existing home sales increased by 3.4% in October compared to September, reaching an annualized rate of 3.96 million units, marking the first year-over-year gain since July 2021.
Inventory of unsold homes rose 19% compared to October 2023, with 1.37 million homes available, equating to a 4.2-month supply at the current sales pace.
The median home price climbed 4% year-over-year to $407,200, continuing a 16-month streak of price increases, driven by tight supply and limited affordable inventory.
Mortgage rates, which briefly dipped to a two-year low of 6.08% in September, averaged 6.78% last week, with economists forecasting stabilization but not a return to pre-pandemic levels.
First-time homebuyers remain challenged, accounting for just 27% of sales, well below the historical average of 40%, as rising prices and higher borrowing costs reduce affordability.