Sales of existing homes rose in October, according to a recent report release, but the housing market continues to be hampered by difficulties in securing home financing.
The news came in the latest report on existing home sales released Monday by the National Association of Realtors, which showed a 1.4 percent rise in home sales from September’s 4.9 million sales. Sales were 13.5 percent above those reported in October 2010, showing significant gains in existing homes market activity.
Sales of existing homes rose in October according to National Association of Realtors report.
However, the good news was tempered by a marked increase in contract failures, which rose to 33 percent, up from just 18 percent in September, and 8 percent in October of last year. The NAR chief economist Lawrence Yun suggested that difficulties buyers face in securing financing continues to be one of the most significant factors affecting the housing market, offsetting increased demand generated by a stabilizing job market, rising rents and high affordability.
Total housing inventory fell in October to 3.33 million homes, an 8-month supply, and is down significantly from the peak inventory of 4.58 million homes seen in July, 2008.
The strongest regional numbers were found in the West, where sales activity was up 4.4 percent from September, and up 15.5 percent from the same month in 2010. Median home prices in this region were down just 1.6 percent year over year, well below the largest drop, which was seen in the Northeast, where home prices fell 5.5 percent from October 2010.
The median price for an existing single-family home was $161,600 in October, representing a drop of 5.8 percent from the price seen just one year ago. Median condo prices held steady month-over-month, and have decreased just 1.5 percent from last year.
I am a Managing Partner, Internet Marketer and Blogger at New Homes Section. Follow me on 
No Comments