Existing Home Sales Rise

Favorable mortgage rates together with high levels of employment are giving housing, a sector that had been flat, a strong lift going into year end. Existing home sales rose 1.9 percent in October to a 5.480 million annual rate, lifting the year-on-year gain to 4.6 percent. Recent reports have been the best since early 2018.

Single-family resales jumped 2.1 percent in the month to a 4.870 million rate with year-on-year change at plus 5.4 percent. Condo resales came in steady at a 590,000 rate but, in contrast to the larger single-family category, are down 1.7 percent on the year. The median price for single-family sales, at $273,600, is 6.2 percent higher than a year ago with the median condo price, of $248,500, up 5.6 percent.

It was the spring sales season in 2018 that proved a flop, pulling the housing sector into a dip from which it is only now beginning to emerge. Yet the pivot upward for resales, despite the strength of this report, has been less visible than for new homes where starts and especially permits data released on Tuesday were very favorable. November sales of new single-family homes will be posted next week.