Sales of previously owned homes dropped to an annualized rate of 3.79 million in October, marking the lowest level in 13 years, according to a report.
In a report released by the National Association of Realtors (NAR) on Tuesday, data showed existing home sales fell to 3.79 million last month, which was 4.1% lower than September's rate and down 14.6% from last year.
"Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation," NAR Chief Economist Lawrence Yun said in the report. "Multiple offers, however, are still occurring, especially on starter and mid-priced homes, even as price concessions are happening in the upper end of the market."
Sales in the West declined 1.4% from September and 14.8% from a year prior. In the South, existing home sales fell 7.1% from September and 14.6% from last year. Sales in the Northeast also dropped 4% from September and 15.8% compared to last October.
Only the rate of home sales in the Midwest remained unchanged between September and October this year. However, existing home sales still dipped 13.9% lower from one year ago.
The record-low sales of existing homes is the slowest pace reported since August 2010. Analysts were only expecting October's home sales to drop to 3.9 million. Only three other months registered lower sales than October, including July 2010, with 3.45 million, per USA Today.
Will Home Sales Increase Next Year?
The number of houses sold in the U.S. began tumbling in 2022 when the Fed announced plans to raise interest rates in hopes of taming a 40-year high inflation. Mortgage rates have since doubled.
However, the NAR expects mortgage rates to fall between 6% and 7% in spring of next year and home sales to climb by 15% in 2024.
"Fortunately, mortgage rates have fallen for the third straight week, stirring up buying interest. Though limited now, expect housing inventory to improve after this winter and heading into the sprinxg. More inventory will result in more home sales," Yun added.
READ NEXT: Mortgage Rates Fall for 3rd Consecutive Week, Downtrend Expected To Continue
