Existing-home sales continue their steady pace. The sharp drop in mortgage rates since last year, combined with slower house-price growth, is providing them with a boost. Sales of existing homes rose 1.9%, to a seasonally adjusted rate of 5.46 million. Compared with a year earlier, they are up 4.6%. But they have yet to regain some momentum and are still down slightly from their 2017 peak. Demand is still strong enough to keep a slow and steady pace of sales. With supply lacking, sales will likely remain subdued as inventories remain at record lows. Listings failed to keep up with sales in October, with the inventory-to-sales ratio for single-family homes declining to 3.8 months. After rising for nearly all of 2018, inventories have trended lower this year. On a year-to-year basis, total inventory was down 2.5% — the fifth consecutive decline.
Home-price growth continues to rise at a modest pace across the nation. The S&P CoreLogic Case-Shiller National Home Price Index rose 3.2% in September from a year ago, up from 3.1% in August. This is the second consecutive month of year-over-year increases, reversing the longer-term trend of decelerating price growth that began in March 2018 and ended in July 2019. Phoenix, Charlotte and Tampa reported the highest year-over-year gains. Price growth in major cities, such as New York, Chicago and Los Angeles, has slowed significantly this year. San Francisco is the only city with an actual decline in home prices so far this year.
Sources:
National Association of Realtors: Existing-Home Sales
Department of Commerce, New-Home Sales
Department of Commerce, Housing Starts
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