These new pendings prices rose by 1.25% this week, to $395,000 and are 5% greater than a year ago.
In the last two years, when October had sharply higher mortgage rates, home sales were tanking and prices were dropping. The opposite is happening now. I don’t expect this to continue. But, this is a stronger signal than I expected for resilience of the homebuyer. This is the price point people are buying. This recent trend implies that the yearly home price appreciation has a little more room than we’ve been expecting.
The median price of all the homes on the market is now $440,000, that’s unchanged from last year.
Inventory is up
The available inventory of unsold homes on the market ticked up to 734,000 single-family homes. That’s up half a percent for the week and is 36.7% more homes on the market than a year ago.
Some of the Sunbelt states, …
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