Existing Home Sales Report

"Existing U.S. home sales edged up in October, according to the National Association of Realtors, even as mortgage credit continued to be tight.

Total existing home sales increased by 1.4 percent to a seasonally adjusted annual rate of 4.97 million units from a downwardly revised 4.90 million in September. Yearly sales are up as well, by 13.5 percent.

Sales have been tempered by several factors, said NAR chief economist Lawrence Yun. "Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales such as job creation, rising rents and high affordability conditions. Many people who are attempting to buy homes are thwarted in the process," he said.

"In some areas we're hearing about shortages of foreclosure inventory in the lower price ranges with multiple bidding on the more desirable properties," Yun added." Realtors in such areas are calling for a faster process of getting foreclosure inventory into the market because they have ready buyers. In addition, extending credit to responsible investors would help to absorb inventory at an even faster pace, which would go a long way toward restoring market balance."

The national median home price fell once again, declining to $162,500 in October from $165,800 in September. Compared to last year, prices are down 4.7 percent." [Continue reading...]