Existing home sales increased to a seasonally adjusted annual rate of 6.85 million in October, representing a 4.3% increase month over month and the highest level since February 2006, according to data released Thursday by the National Association of Realtors.
This increase, combined with homeowners’ reluctance to sell, has depleted inventory, which stands at 1.2 million homes, translating to an extremely quick turnover rate of 2.4 months. The average inventory turn since 2010 has been just over five months.
Existing home market conditions are resulting in bidding wars, higher home prices and rising confidence, an ideal market for homebuilders to keep building.
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