October Results Surprise on the Upside

Housing sales and prices increased from a year ago. The REAL Trends Housing Market Report for October 2014 shows that housing sales increased 9.3 percent from the same month a year ago. The annual rate of new and existing home sales for October 2014 was 6.184 million units up from a rate of 5.659 million in October 2013.

Housing prices rose an average of 2.4 percent from October 2013, continuing the slow decline of year over year price increases in housing sales. Price increases have now settled to a mid-single to low digit growth rate for the past five months.

Housing unit sales for October 2014 increased 13.8 percent in the South, the best performance in all regions. Northeast sales were up 9.6 percent; the Midwest region saw unit sales increases of 6.6 percent, and the Western region saw unit sales increase by 4.5 percent.

“The October housing data surprised us with much higher increases in the rate of home sales than were expected. This shows that, as the year has progressed, and job growth has grown, so too have housing sales followed this upward trend. Home price increases have calmed down significantly since the first quarter allowing household incomes and calm mortgage rates to improve the ability for home buyers to catch up with the market,” said Steve Murray, editor of the REAL Trends Housing Market Report.

The average price of homes sold in October 2014 in the Midwest region increased by 4.9 percent, the best result in the nation. The Western region saw average prices increase 4.4 percent, average prices in the South were up 2.0 percent, and the Northeast had an average price increase of 1.0 percent.

“It seems that month to month we are now seeing strength in the market that was unexpected,” says Murray. “Should the mortgage rate environment and job growth continue to be positive we expect housing sales will continue a very slow but steady improvement in the months ahead.” 

REAL Trends October/ September Housing Market Report
(Versus same month a year ago)

REAL Trends Housing Report October

This article originally appeared in the December issue of the REAL Trends Newsletter and is reprinted with permission of REAL Trends Inc. Copyright 2014

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