Inventory and new listings dropped, though
A new report from Redfin says that the median home sale price increased 7 percent in October, the largest year-over-year growth in 10 months.
Everything isn’t rosy, however. Inventory fell for the 13th consecutive month, and new listings decreased 6.9 percent, the largest year-over-year decline in nearly four years.
While the October market rewarded sellers, it hit buyers at the low end of the market the hardest. The lack of affordable new construction, high investor demand for rental units and a slowdown in new listings sent prices for starter homes up faster than they have grown all year. With no new supply surge on the horizon, finding an affordable home will continue to be an unrelenting challenge for first-time buyers for the remainder of the year and into 2017. The good news is that mortgage rates continue to provide an affordability cushion, giving buyers a bit of wiggle room against budget constraints.
Other highlights from the report: Seven metros in Florida had the highest home price growth; St. Louis led the nation in sales growth; Seattle is the nation’s fastest market; Buffalo, N.Y. had the largest decrease in inventory; and as a whole, homes spent a median 49 days on the market, five fewer days than last year.