​​​​Housing Market Hits Milestone with Year-Over-Year Growth

For the first time since July 2021, year-over-year existing-home sales climbed in October, which is a sign of optimism for the housing market. According to the National Association of Realtors® (NAR), sales increased 3.4% month over month and 2.9% year over year. According to Lawrence Yun, chief economist for the NAR, “The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions.” Housing demand is also increasing due to continuing job gains and economic growth.

Housing Affordability Challenges

Despite rising sales, buyers are navigating significant affordability hurdles due to elevated home prices and mortgage rates. All regions reported price increases, with the median price continuing its upward trend. "The ongoing price gains mean increasing wealth for homeowners nationwide," Yun explained. Relief may be on the horizon as growing inventory and new home construction are expected to moderate price growth in the coming year. Additionally, foreclosures and short sales accounted for just 2% of all transactions, suggesting that despite affordability challenges, there remains stability and confidence in home values.

Trends Among Buyers

First-time buyers accounted for 27% of October purchases, up from 26% a month ago but down from 28% a year ago. Yun expressed optimism that stabilizing mortgage rates will sustain demand among this group. Cash investors, who represented 27% of purchases, saw slight declines from 30% in September and 29% last year.

Regional Sales Breakdown 

South

Existing-home sales annual rate of 1.77 million; an increase of 2.9% from September 2024 and 2.3% from October 2023.