Smallest number of existing home closings since 2010

Existing home sales in October totaled 3.79mm, about 100k less than expected and assume many of these contracts were signed in the June thru September time frame. That compares with 3.95mm in September and is the smallest number of transactions of existing homes since August 2010 and is nearing the lowest since the 1990’s.

First time buyers still are making up less than 30% of purchases because of the obvious affordability challenges. It stood at 28% in October vs 27% in September and 29% in August. All cash buyers who don’t need a mortgage totaled 29% of purchases, holding at its multi month high and up from 26% in October 2022. Coincident with the sales drop, months’ supply rose to 3.6 and that is the highest since June 2020. It stood at 4.0 in October 2019. Home prices were up 3.4% y/o/y and is up a whopping 43% since December 2019. Thank you again Fed for buying all those MBS and for delivering zero rates again.