Home buying activity for the second straight month saw a cyclical high. This was an indication the housing market is stabilizing with the year coming to an end.
Sales of owned homes rose to 2.0% from September to an adjusted annual rate of 5.60 million, said the National Association of Realtors. That is the fastest pace since February 2007.
Existing-home sales account is the main reason to show a rise in the U.S. home buying activity. After hitting in June an annual rate of 5.57 million, sales softened in the third quarter and later picked up in the past two months.
The sales showed an up in all four regions of the country, said Lawrence Yun, the NAR’s chief economist. Especially, the sales of previously owned homes were up 5.9% in October from a year earlier.
Home buying continued despite rising prices and low inventory. At the latest sales pace, it takes 4.3 months to use up the previously owned homes in the market. Housing inventory is down on a year-over-year basis for straight 17months, said NAR. The median price in October of an existing home sold was $232,200 up 6.0%.
First-time home buyers have accounted to 33% in the October sales, as per NAR, down from September 34%, a figure that matched since July 2012 the highest level.
Home-building activity rebounded in October and now Home-builder sentiment is at an elevated level in November, though construction is at historically low levels.