Home prices rose slightly in October due to the decline in the level of inventory. Median price for an existing home was $199,500, up 0.5% from last month. Compared to the same month last year, median home price is up 12.8%. This was the eleventh consecutive month of double digit year-over-year home price increases.
In October the seasonally adjusted annual pace of sales declined to 5.12 million homes, which is down 3.2% from the previous month's level of 5.29 million. Year-over-year sales are up 6% from last October's pace of 4.83 million homes, according to the National Association of Realtors. Persistently low levels of inventory are still a factor in constraining home sales, particularly as we move into the winter months, when inventory typically declines, as well as availability of credit to buyers.
According to NAR, the level of total housing inventory in the country dropped in October to 2.13 million homes, down 1.8 percent from the previous month. Month's supply of inventory however, ticked up slightly due to the lower pace of sales this month. Supply in October represented 5.0 months, up 2% from the previous month, but still down 3.8% from the same month last year.
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