U.S. Existing-Home Sales Rise for First Time in Seven Months

(Bloomberg) -- Sales of previously owned U.S. homes rose in October for the first time in seven months, suggesting demand is stabilizing at a lower level as available properties become less scarce.

Contract closings increased from the prior month to an annual rate of 5.22 million, the National Association of Realtors said Wednesday. That compared with economists’ projections for sales of 5.2 million. The median sales price rose 3.8 percent from a year earlier, while the inventory of available homes expanded 2.8 percent, the third straight increase.

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• Home purchases rose in three of four regions: the Northeast, South and West recorded increases, while sales declined in the Midwest.
• Sales declined from a year earlier in the largest price category, the $100,000 to $250,000 range, as well as below $100,000; they rose at prices above $250,000.
• The monthly increase was more pronounced in condominium and co-op units, which were up 5.3 percent to 600,000. Sales of single-family homes rose 0.9 percent.
• At the current pace, it would take 4.3 months to sell all homes on the market, compared with 4.4 months in September, below the five-months’ supply mark that realtors consider consistent with a tight market.
• Existing-home sales account for about 90 percent of the market and are calculated when a contract closes. The remainder of the market is made up by new home sales, which are a timelier indicator as they’re tabulated when contracts get signed.

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