U.S. existing-home sales unexpectedly increase in October

The National Association of Realtors (NAR) announced on Thursday that the U.S. existing home sales rose 4.3 percent m-o-m to a seasonally adjusted rate of 6.85 million in October from a revised 6.57 million in September (originally 6.54 million). That was the highest reading since November 2005.

Economists had forecast home resales decreasing to a 6.45 million-unit pace last month.

In y-o-y terms, existing-home sales climbed 26.6 percent in October.

According to the report, each of the four major regions recorded both m-o-m and y-o-y growth, with the Midwest experiencing the greatest monthly increases. Single-family home sales stood at 6.12 million in October, up 4.1 percent from 5.88 million in September, and up 26.7 percent from one year ago. The median existing single-family home price was $317,700 in October, up 16.0 percent from October 2019. Meanwhile, existing condominium and co-op sales were recorded at a seasonally-adjusted annual rate of 30,000 units in October, up 5.8 percent from September and up 25.9 percent from one year ago. The median existing condo price was $273,600 in October, an advance of 10.3 percent from a year ago.

Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year," noted Lawrence Yun, NAR's chief economist. "The surge in sales in recent months has now offset the spring market losses," he added. "With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market's growth to continue into 2021." Yun sees existing-home sales to rise by 10 percent to 6 million in 2021.