October Existing-Home Sales Decline 2.7 Percent

While homebuyers gravitated to new homes in October, a measure of existing home sales declined 2.7 percent for the same month, to a seasonally adjusted annual rate of 7.09 million units, according to the National Association of Realtors.

David Lereah, NAR's chief economist, said markets are getting into better balance between demand and supply. "We are returning to more balanced markets between home buyers and sellers, one that places buyers on a more even footing. Housing activity has peaked and is coming down a bit, and we expect further cooling in the coming months. We feel confident that housing is landing softly as rates continue to rise."

The national median existing-home price for all housing types-- including single-family, townhomes, condominiums and co-ops--was $218,000 in October.

Total housing inventory levels rose 3.5 percent at the end of October to 2.87 million existing homes available for sale, which represents a 4.9-month supply at the current sales pace. A Reuters report states that is the highest inventory of homes on the markets since 1986.

Regionally, existing-home sales fell 1.2 percent in the West in October to a pace of 1.64 million, and were 3.8 percent higher than October 2004. The median price in the West was 316,000, up 16.2 percent from October 2004.

Total existing-home sales in the South declined 1.8 percent to an annual sales rate of 2.76 million units in October, and were 7 percent above October 2004. The median price in the South was $196,000, up 18.1 percent from a year ago.

Existing-home sales in the Midwest fell 1.9 percent to annual pace of 1.58 million units in October, and were 1.3 percent higher than a year ago. The median price in the Midwest was $170,000, which was 10.4 percent higher than October 2004.

Total existing-home sales in the Northeast declined 7.4 percent to a pace of 1.12 million units in October, and were unchanged compared to a year ago. The median existing-home price in the Northeast was $252,000, up 10.5 percent from a year ago.