October Monthly Market Comparison-HAR Report
Homebuying activity slowed for a seventh straight month in October, with mortgage interest rates hovering around seven percent, more than double what it was a year ago, as well as a lack of housing inventory below $400,000. Year-over-year single-family home sales fell 22.8 percent. On a year-to-date basis, sales are trailing last year’s record pace by 6.7 percent.
The monthly housing measurements for October yielded mixed readings. In addition to the drop in single-family home sales, total property sales and total dollar volume declined and pending sales fell 23.4 percent. Active listings (the total number of available properties) jumped 43.0 percent.
Months of inventory continues to grow, reaching a 2.8-months supply in October. That is the highest level since July of 2020 when it was 2.9 months. Housing inventory nationally stands at a 3.2-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is generally considered make up a “balanced market,” in which neither the buyer nor the seller has an advantage.