Home sales climb markedly in October

November 15th, 2012

Home sales surge in October as home prices continue to show strength.

The mortgage market continues to show signs of strong recovery, as October home sales surge nearly 22 percent in October across 19 real estate markets.

According to real estate broker Redfin, more Americans purchased homes last month as October home prices increased 8.4 percent year-over-year, and 0.4 percent month-over-month. As more buyers purchased homes in October, inventory dropped 29.4 percent from the same period last year. The news is positive for both buyers and sellers alike, as the latter group has been reticent to list homes on the market due to fears of not receiving lucrative offers.

“With supply low, and, the economy slowly improving due to record-low interest rates, demand has increased. Household formation is now at a record high. High demand and low supply drives prices up,” said Glenn Kelman, CEO of Redfin. “The $64,000 question is whether more people will list their homes for sale in 2013. Based on the conversations our agents have been having with homeowners, we think they will.”

Various factors continue to affect the strength of housing sectors nationwide, including Hurricane Sandy.While the national market may be improving, working with a mortage service company is still recommended as market strength varies from city to city.