After climbing almost 5 percent in September, sales of previously owned homes fell in October, according to new estimates from the National Association of Realtors. Total existing-home sales – which include single-family homes, townhomes, condominiums, and co-ops – dropped 3.4 percent from the month before, though they remain 3.9 percent above last year’s level. Lawrence Yun, NAR’s chief economist, said sales were expected to slow. “New and existing-home supply has struggled to improve so far this fall, leading to few choices for buyers and no easement of the ongoing affordability concerns still prevalent in some markets,” Yun said. Despite low inventory, however, Yun believes sales will continue to see gains. “As long as solid job creation continues, a gradual easing of credit standards, even with moderately higher mortgage rates, should support steady demand and sales continuing to rise above a year ago.” Also in the report, the share of first-time home buyers rose in October to 31 percent, up from 29 percent in September. All cash sales were 24 percent of total transactions, while distressed sales declined 6 percent from the month before. More here.
