November 21, 2017 – Existing home sales provide the number of purchases made for homes, condominiums, and co-ops that have already been built. Existing home sales give an indication of demand for housing. While home resales may not generate new construction jobs like those that housing starts do, they have a similar effect on consumer spending as people purchase items for their new home.
Existing home sales rose 2.0% in October to an annualized rate of 5.480 million. This comes in above expectations of an annualized rate of 5.440 million and well above September’s rate of 5.370 million. Single-family home sales increased 2.1% along with condo sales increasing 1.7%. Existing home sales are down 0.9% year-over-year. The median price is at $247,000, up 5.5% from the last year. Supply fell 3.2% in October to 3.9 months.
Existing home sales increased in all of the four regions in October. The Northeast rose the highest at an annual rate of 4.2%. The West, South, and Midwest all contributed to the rise in existing home sales with increases of 2.4%, 1.9%, and 0.8% respectively. Increases in home sales tends to leave a ripple effect on the economy. When homes are purchased, people tend to redecorate and update appliances and furniture in the home.