• October Existing Home Sales showed unexpected strength, rising 2 percent to 5.6 million (SAAR), according to the National Association of Realtors. October existing home sales were the strongest recorded since February 2007.
• The median price of existing homes sold in October rose 0.4 percent (seasonally adjusted) from September and  6 percent year-over-year, to $236,400 — the highest price on record and 2.5 percent above pre-recession peaks set in October 2005.
• The number of existing homes available for sale also rose in October, climbing 3 percent (seasonally adjusted) from September, though inventory remains down 4.3 percent from a year ago. The market has now experienced two straight months of seasonally adjusted inventory gains, after five consecutive monthly declines.

The existing home sales market continues to show surprising strength, defying expectations for a modest fall and instead delivering the strongest month in almost a decade. Clearly, the market continues to underestimate just how much demand for homes is out there, even in the face of tight inventory and rising existing home prices that are now the highest on record. Growing wages and still relatively low interest rates are likely to keep demand high for the foreseeable future, meaning sellers will probably remain in the driver’s seat for a while yet. Sooner or later, something will have to give — most sellers, after all, typically turn around and become buyers, and it’s not an easy market for buyers these days, despite the success they’re having. But for now, unless inventory comes surging back in a big way over the next few months, the intense competition, bidding wars and drawn-out buying processes we’ve been seeing for a while look set to continue.