Sales of previously owned homes in October rose 0.8% to a seasonally adjusted annualized rate of 6.34 million units, according to the National Association of Realtors. Sales were 5.8% lower than October 2020. October of last year was the cyclical high in the market.
This measure represents closed sales for existing single-family homes and condominiums in October, so contracts that were likely signed in August and September. The closing process can take one to two months on average.
Realtors are now predicting full-year sales of over 6 million, which would be the highest number of sales since 2006.
“Sales remain very strong and I would attribute that to continuing job additions,” said Lawrence Yun, chief economist for the Realtors.
Yun also pointed to an increase in investors in the market, likely driven by soaring rents for single-family homes. Investors made up 17% of October buyers, up from 13% in September and 14% in October of 2020. All cash buyers represented 24% of buyers. Most investors use all cash.