Despite Hurricane Sandy, sales of existing homes increased in October, and lower levels of home inventory drove an increase in home prices, as well, according to the National Association of Realtors. Total existing home sales rose 2.1 percent from September to a seasonally adjusted annual rate of 4.79 million and were 10.9 percent above the 4.32 million-unit rate of October 2011.
The national median existing-home price for all housing types in October was $178,600, 11.1 above the price in October 2011. October marked the eighth consecutive month of year-over-year increases. The last time there were eight consecutive months of price increases was from October 2005 to May 2006.
Single-family home sales rose 1.9 percent to a seasonally adjusted annual rate of 4.22 million in October from 4.14 million in September, and were 9.6 percent above the 3.85 million-unit pace in October 2011. The median existing single-family home price was $178,700 in October, 10.9 percent higher than October 2011.
"Rising home prices have already resulted in a $760 billion growth in home equity during the past year," said Lawrence Yun, NAR chief economist. "Given that each percentage point of price appreciation translates into an additional $190 billion in home equity, we could see close to a $1 trillion gain next year."
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.38 percent in October from 3.47 percent in September.
A detailed report of the third-quarter numbers can be read here.
