Based on October results surprise on the upside
October 14, 2014 – The REAL Trends Housing Market Report for November 2014 shows that housing sales increased 9.3 percent from the same month a year ago. The annual rate of new and existing home sales for October 2014 was 6.184 million units up from a rate of 5.659 million in October 2013.
Housing prices rose an average of 2.4 percent from October 2013, continuing the slow decline of year over year price increases in housing sales. Price increases have now settled to a mid-single to low digit growth rate for the past five months.
Housing unit sales for October 2014 increased 13.8 percent in the South, the best performance in all regions. Northeast sales were up 9.6 percent, the Midwest region saw unit sales increases of 6.6 percent and the Western region saw unit sales increase by 4.5 percent.
The average price of homes sold in October 2014 in the Midwest region increased by 4.9 percent, the best result in the nation. The Western region saw average prices increase 4.4 percent, average prices in the South were up 2.0 percent and the Northeast had an average price increase of 1.0 percent.
“The October housing data surprised us with much higher increases in the rate of home sales than were expected and shows that as the year has progressed, and job growth has grown, so too have housing sales followed these trends. Home price increases have calmed down significantly since the first quarter allowing household incomes and calm mortgage rates to improve the ability for home buyers to catch up with the market,” said Steve Murray, editor of the REAL Trends Housing Market Report. “It seems that month to month we are now seeing strength in the market that was, to say the least, unexpected. Should the mortgage rate environment and job growth continue to be positive we expect housing sales will continue a very slow but steady improvement in the months ahead.”
REAL Trends Housing Market Report
October 2014 September 2014
Closed Sales AVG Price Closed Sales AVG Price
+9.3% +2.4% +5.6% +6.5%
+9.6% +1.0% +6.1% +1.0%
+13.8% +2.0% +8.1% +6.0%
+6.6% +4.9% +3.2% +6.8%
+4.5% +4.4% +3.4% +11.2%