The national drop in existing home sales volume isn’t as big a concern as the anemic 28% first time home buyers. As I’ve conveyed for years, the housing market is not healthy. The increase in values have been driven by hedge funds, domestic and foreign investors… Watch for my blog on the upcoming mortgage regulations that will impact the domestic buyers in 2014.
AP – Published: Wednesday, 20 Nov 2013 | 10:00 AM ET
Fewer Americans bought existing homes in October, as higher mortgage rates, the 16-day partial government shutdown and a limited supply of homes reduced sales.
The National Association of Realtors says home resales fell 3.2 percent last month from September to a seasonally adjusted annual pace of 5.12 million. That’s down from a 5.29 million pace in August and the slowest since June.
Sales of existing single family homes declined 4.1 percent, while condominium sales rose 3.3 percent.
The median sales price of an existing home was $199,500 in October, up 12.8 percent from a year earlier and the 11th-straight month of double-digit annual increases.
First-time home buyers accounted for just 28 percent of sales, down from 40 percent in healthier housing markets.
A separate report from the Commerce Department showed that U.S. business inventories rose more than expected in September as sales advanced modestly, suggesting the government’s third-quarter growth estimate could be revised higher.