In October, U.S. home sales fell for the ninth consecutive month.

The National Association of Realtors reports that in October 2022, existing-home sales fell for the ninth consecutive month. Month-over-month and year-over-year declines were seen in each of the four major U.S. regions.

Single-family homes, townhomes, condominiums, and co-ops make up the majority of completed existing-home sales, which dropped 5.9% from September to a seasonally adjusted annual rate of 4.43 million in October. Sales decreased by 28.4% on a yearly basis.

As mortgage rates increased in October, more prospective homebuyers found it harder to qualify for a loan, according to Lawrence Yun, chief economist for the National Association of Realtors. “The impact is greater in pricey regions of the nation and in markets that have seen significant increases in home prices recently.”

1.22 million units made up the total housing inventory as of the end of October, which was a decrease of 0.8% from both September and one year earlier. At the current sales rate, unsold inventory has a 3.3-month supply, up from 3.1 months in September and 2.4 months in October 2021.

Yun continued, “Inventory levels are still low, which is why some properties for sale are still drawing multiple offers.” “24 % of the homes in October brought in more than their asking price. On the other hand, homes that remained on the market for more than 120 days saw an average 15.8% price reduction.”

As prices increased across the board, the median existing-home price for all housing types in October was $379,100, an increase of 6.6% from October 2021 ($355,700). The longest streak ever is now complete, with increases over the prior year occurring in 128 straight months.

Compared to 19 days in September and 18 days in October 2021, properties typically stayed on the market for 21 days in October. In October 2022, 64 percent of the homes that were sold were available for less than a month.

In October, 28% of sales came from first-time buyers, down from 29% in both September 2022 and October 2021. The annual share of first-time buyers was 26%, the lowest since NAR started tracking the data, according to NAR’s 2022 Profile of Home Buyers and Sellers, published earlier this month.

26% of transactions in October were all-cash sales, up from 22% in September and 24% in October 2021.

In October, 16% of homes were bought by individual investors or second-home buyers, who account for a large portion of cash sales; this is up from 15% in September but down from 17% in October 2021.

In October, distressed sales, including foreclosures and short sales, made up 1% of total sales, down from 2% in September and the same as in October 2021.

The average commitment rate for a 30-year, conventional, fixed-rate mortgage, according to Freddie Mac, increased to 6.90% in October from 6.11% in September. Over the course of 2021, the average commitment rate was 2.96%.

Home sales may have reached the bottom of the current housing cycle because mortgage rates have declined since peaking in mid-November, according to Yun.

According to Realtor.com’s Market Trends Report for October, Milwaukee (+34.5%), Miami (+25.1%), and Kansas City (+21.4%) saw the largest increases in median list prices year over year. Phoenix (+35.9 percentage points), Austin (+31.2 percentage points), and Las Vegas (+24.4 percentage points) saw the largest increases in the proportion of homes with lower prices compared to last year.

Condo/Co-op and single-family sales

A seasonally adjusted annual rate of 3.95 million single-family homes was sold in October, a decrease of 6.4% from 4.22 million in September and 28.2% from a year earlier. In October, the median price of an existing single-family home was $384,900, an increase of 6.2% from October 2021.

In October, sales of existing condos and co-ops were reported at a seasonally adjusted annual rate of 480,00 units, which was down 2.0% from September and 30.4% from the year before. In October, the median price of an existing condo was $331,000, representing a 10.1% annual increase.

Regional Analysis

In the Northeast, existing-home sales fell 23.0% from October 2021 to an annual rate of 570,000 in October, a 6.6% decline from September. In the Northeast, the median price rose 8.0% from the prior year to $408,700.

In October, existing-home sales in the Midwest dropped 25.5% from the previous year to a rate of 1,080,000, a 5.3% decline from the previous month. In the Midwest, the median price increased 5.9% from October 2021 to $274,500.

Existing-home sales in the South fell 27.2% from this time last year to 1,980,000 annually in October, a 4.8% decrease from September. In comparison to a year ago, the median price in the South increased by 8.0% to $346,300.

In the West, existing-home sales fell 37.5% from a year ago to an annual rate of 800,000 in October, down 9.1% from September. In the West, the median price increased 5.3% from October 2021 to $588,400.

Realestate