Home Sales, Prices Up

October’s 2.1 increase of existing home sales represents a seasonally adjusted annual rate of 4.79 million as reported by the National Association of Realtors (NAR)., putting October at a 10.9% year-over increase from the 4.32 million-unit figure in October 2011.

“Home sales continue to trend up and most October transactions were completed by the time the storm [Sandy] hit, but the growing demand with limited inventory is pressuring home prices in much of the country, said Lawrence Yun, NAR chief economist. “We expect an impact on Northeastern home sales in the coming months from a pause and delays in storm-impacted regions.”

NAR notes the national median existing-home price for all housing types was $178,600 in October, an 11.1% rise from last year, marking eight consecutive monthly year-over-year increases.

“Rising home prices have already resulted in a $760 billion growth in home equity during the past year,” said Yun. “Given that percentage point of price appreciation translates into an additional $190 billion in home equity, we could see close to a $1 trillion gain next year.”