In October, America’s home sales rose by 3.9%, marking the fourth month of the past six to post a year-over-year increase in sales, according to the RE/MAX National Housing Report.
“October continued a recent win streak for home sales, and the market is positioned much better than it was a year ago,” said RE/MAX Holdings CEO Adam Contos. “Demand is strong, due in part to low-interest rates, but buyers have limited options because inventory remains such a challenge.”
RE/MAX reports that although sales increased last month, the nation’s housing inventory posted a steep decline. According to the company, housing inventory fell 9% year-over-year across the report’s 54 housing markets, representing the largest retreat since May 2018.
Furthermore, October posted a 3.1-month supply of inventory, marking the lowest October amount in the report’s 11-year history. RE/MAX indicates homes spent 49 days on the market, which is the second-lowest figure for October in report history.
As the nation’s housing inventory dwindles, home prices continue to rise across the country, Contos said. However, key forecasts suggest an increase in new-homes moving onto the market next year, which Contos said may help address inventory constraints and potentially slow steady price gains.
According to the report, the median price for a home was $254,000 in October, climbing 8.4% from last year. Going back to October 2013, last month’s total now marks the highest annual increase for the month.
NOTE: The RE/MAX National Housing Report is based on MLS data in approximately 53 metropolitan areas, including all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state.