Published Thu, Nov 21, 2024, 10:00 AM EST

Home sales rebounded in October, rising 3.4% from September to an annualized rate of 3.96 million units, according to the National Association of Realtors (NAR). Sales also marked a 2.9% annual increase—the first in over three years—driven by falling mortgage rates earlier this year.

Inventory climbed to 1.37 million units, a 19.1% increase from October 2023, but still falls short of pre-pandemic levels. Median home prices rose 4% year-over-year to $407,200, with higher-priced homes seeing more activity.

First-time buyers comprised just 27% of sales, reflecting challenges from elevated mortgage rates, now averaging 7.05%. Lawrence Yun, NAR’s chief economist, noted stabilizing rates and economic growth could spur future demand, though inventory remains tight.

A post-election surge in buyer inquiries reported by Redfin suggests the market may be poised for continued improvement.