Existing Home Sales fall 3.2 percent in october
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WASHINGTON -- U.S. home resales fell in October to their lowest since June due to an inventory shortage and high property prices that have dampened buying power.

The National Association of Realtors said Wednesday that sales of previously owned homes fell 3.2 percent last month to an annual rate of 5.12 million units.

Economists polled by Reuters had expected sales to drop to a 5.13 million unit pace in October.

At the same time, the median price rose 12.8 percent in October from a year ago to $199,500. It was the 11th straight month of double-digit gains, and up from last month.

October's inventory was 2.13 million existing homes for sale, up just 0.9 percent from the year-earlier period, representing five months' supply at the current pace.

The pace of annual sales growth decelerated to 6 percent in October, as tight credit conditions and high borrowing costs are impacting the housing market recovery. Purchases fell in the month in all four regions, with the most dramatic drop seen in the West, where they declined 7.1 percent.

First time buyers remain on the sidelines, representing 28 percent of all home purchases, which is below the historical average.
The rate has fallen below 30 percent for 7 straight months. At the same time, cash purchases remain elevated and account for about 31 percent of home purchases. Investors snapped up 19 percent of the market, similar to the September sales figures.

Sales in coming months are also expected to be hampered by a lack of inventory on the market and a government shutdown that has halted some final property transactions.

The NAR said a combination of high home prices and increased mortgage rates was hurting affordability. The trade group said the rate of newly constructed homes is disappointing and hampering the broader housing market recovery.

U.S. home resales fell in October due to an inventory shortage and high property prices that have dampened buying power and are expected to drag on the recovery.


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jdykbpl45

It is the lack of jobs under Obama and the democrats, stupid.

November 21 2013 at 2:35 AM Report abuse +1 rate up rate down Reply
mac2jr

Existing homes by owner or by foreclosure and short sales?

After one year of attempting to buy a house in the American Southwester states of Nevada and Arizona, I have found the following:

Short Sales are phony sales in that the seller's have no say in what their mortgage banks are doing or for what price the property is to be sold. Both myself and the Sellers' in four of seven instances agreed to the sale and signed Contracts of Sale, only to have the seller's banks take the property off the market, or demand more, just days before the scheduled closings. This is Fraud, but appears to be legal in these two states.

In one instance the property was a Fanny Mae / Freddy Mac property that was assigned to a Realtor for sale and safe keeping, the Realtor neglected the property and finally through stupidity flooded it to the point that mold and mildew destroyed the entire structure, only two weeks from closing..

Another property offed by a bank was offered at one price and after qualifying was raised by over 10%, which resulted in the buyer no longer being qualified.

Another was offered at a price, the buyer, me, agreed to the price, and then the seller pulled the property stating he or they had a better bid.

Each and every one of these properties STILL SIT VACANT months after the fact, thus the sellers (owners) lost out, and the buyer lost out, and the properties are being looted, neglected, and turning to ruins, all because of someone's GREED.... usually a bank's....

November 20 2013 at 11:55 AM Report abuse rate up rate down Reply