• 4.43 million existing homes were sold in October (SAAR), down 5.9% from September and down 28.4% from October 2021, according to the National Association of Realtors (NAR).
• Total housing inventory at the end of October amounted to 1,220,000 units, NAR said, down 0.8% from September and 0.8% from one year ago.
• The median existing-home price for all housing types in October was $379,100, up 6.6% from October 2021.

Existing home sales slipped in October, continuing the trend with every month in 2022 seeing a drop in sales. But the effect was larger than previous months, with October seeing the largest year over year existing home sales decrease since 2007, at the same time that mortgage rates hit their 20-year high. Affordability constraints are throwing a wrench into the previous momentum of the market, causing home buyers to step back as they are being priced out. And home sellers are not immune either, current rates are forcing would-be sellers to stay put in their existing homes with much lower rates, reducing the flow of new listings onto the market. Both a pull back in demand and supply are limiting sales counts. Without a significant improvement in affordability, existing home sales will likely continue to disappoint compared to the pandemic peak. Recent downward movement in mortgage rates might provide some reprieve in the coming months, but with home values appearing to hold strong, affordability challenges still remain top of mind.