(Kitco News) - Gold prices are holding their earlier gains after the latest data showed the U.S. housing market improved beyond expectations in October.
Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 3.4% to a seasonally adjusted annual rate of 3.96 million in October, the National Association of Realtors (NAR) announced on Thursday. The data was better than expected, as the consensus forecast of economists called for a 0.8% rise to 3.93 million. September’s total was revised downward to 3.83 million from the originally reported 3.84 million units. Year-over-year, sales were up 2.9% from October 2023.
Spot gold last traded at $2,667.11 for a gain of 0.64% on the day at the time of writing.
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” said NAR Chief Economist Lawrence Yun. “Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”
The report noted that existing-home sales rose month-over-month in all four regions, and rose year-over-year in the South, Midwest, and West in October, but were unchanged in the Northeast.
Total housing inventory stood at 1.37 million units at the end of October, up 0.7% from September and 19.1% from the 1.15 million posted one year ago. Unsold inventory sits at a 4.2-month supply at the current sales pace, down from 4.3 months in September but up from 3.6 months in October 2023.
“More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun said. “However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low. Distressed property sales accounted for only 2% of all transactions in September.”
The median existing-home price for all housing types in October was $407,200, up 4.0% from $391,600 one year ago. All four U.S. regions registered price increases.
“The ongoing price gains mean increasing wealth for homeowners nationwide,” Yun added. “Additional inventory and more home building activity will help price increases moderate next year.”
