Gold prices remain down as U.S. existing home sales rise 4.3% in October
(Kitco News) - The U.S. housing market continues to be a bright spot in the U.S. economy as more consumers are buying homes according to the latest data from the National Association of Realtors (NAR).
Thursday, the NAR said Existing home sales increased 4.3%% last month to a seasonally adjusted and annualized rate of 6.85 million units, compared to September’s annualized rate of 6.54 million homes. Economists were expecting to see a sales rate of 6.45 million homes.
For the year home sales are up a whopping 26.6%, the report said.
"Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year," said Lawrence Yun, NAR's chief economist in a statement.
The latest housing market data is having little impact on gold prices as the market remains under continued selling pressure, testing critical support. December gold futures last traded at $1,859.40 an ounce, down 0.79% on the day.
"The surge in sales in recent months has now offset the spring market losses," Yun added. "With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market's growth to continue into 2021." Yun forecasts existing-home sales to rise by 10% to 6 million in 2021.
Looking at home prices, the report said the median existing-home price for all housing types in October was $313,000, up 15.5% from October 2019. October's national price increase marks 104 straight months of year-over-year gains.
U.S. home prices continue to be support by falling supply. The report said that total housing inventory the end of October totaled 1.42 million units, down 2.7% from September and down 19.8% from one year ago. The reported added that unsold inventory sits at an all-time low 2.5-month supply at the current sales pace.