Home sales of previously purchased homes in the month of October increased by 0.8% to an adjuster rate of 6.34 million units annually. This was reported by the National Association of Realtors, which further stated that the sales in October 2021 were 5.8% lower than in October 2020. October 2020 has been considered to be the cyclical high in the entire housing market.
This measure is indicative of closed sales for existing single-family homes and condos in October- which implies that the contracts had been signed in August and September. It is usually assumed that the closing procedure can take up to two months on average. Home realtors have predicted a full-year sales of around 6 million- which should definitely be the largest number of sales since 2006.
Home Sales Have Been The Highest They have Ever been
Lawrence Yun, the Chief Economist for the Realtors, has stated that home sales remain quite strong- something that would be attributed to continuing job opportunities. Yun also signaled an increase in investors in the market, which could be hugely driven by increasing rents for homes that have been set aside for single-family homes.
Investors have also made up around 17% of the buyers from October, which was an increase from 13% in September, and 14% in October 2020. All-cash buyers put up a 24% portion of all buyers.
The supply of existing residential properties for home sales has steadily gone down over the years. There were around 1.25 million homes left for sale at the end of last month, which is 12% lower than the amount just a year ago. This would represent a 2.4 month supply at the current pace of sales. A 5 to 6 month supply is usually considered to be a balanced ground between sellers and buyers.
By price divisions, the home sales with a price under $250,000 fell by 24% year over year. The selling price of homes between $750,000 and $1 million increased by 25%.
