Median Sales Price
In October, the median sales price experienced a slight decline, affecting both new and existing (resale) homes. On average, homes sold for $31,000 less than their original listing price. This suggests that buyers currently have greater leverage in negotiating final sales prices. While this trend impacted both market segments, it was more pronounced for new homes.
Home Sales Volume
The number of homes sold increased for the second consecutive month in October. Although both new and resale homes saw a rise in sales, the percentage increase was notably higher for new homes. Interestingly, many new builds sold in October were priced lower than comparable properties in September. This pricing flexibility likely contributed to the uptick in new home sales.
Pending Sales
Pending sales declined in October for new construction and resale homes. Notably, the median price of pending sales was nearly $100,000 higher than that of closed sales during the same period. The sales figures for November will reveal whether this represents a meaningful price shift or if final sale prices will be negotiated down, potentially bringing the November median sales price closer to October levels.
Inventory Trends
Inventory levels for both new and resale homes decreased in October but remained higher than at the same time last year. The drop in inventory was influenced by a second consecutive month of decline in resale homes. Factors such as persistently high interest rates and the upcoming November election may have prompted some sellers to delay listing their properties, while buyers hesitated to enter the market due to current mortgage rates.
Days on Market
The average days on market held steady in October. However, there were contrasting trends within the two segments:
- New Homes: Over 30% of new homes remained on the market for more than 90 days, increasing the average time to sell.
- Resale Homes: A significant portion of resale properties sold within the first 30 days, reflecting strong demand in this segment.