Zillow Research

Rapid Reaction: October Existing Home Sales

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.

About the author

Svenja is Zillow's Chief Economist. To learn more about Svenja, click here.
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