Americans bought more homes last month, as sales snapped back in hurricane-hit Texas and Florida. Yet the market is still suffering from a dwindling supply of available houses.
Sales rose 2% in October to a seasonally adjusted annual rate of 5.48 million, the National Association of Realtors says. That’s the fastest pace since June, though sales are down 0.9% from a year ago.
The number of available homes has fallen 10.4% from a year earlier to just 1.8 million—the lowest for any October since NAR began tracking the data in 1999.
The tight supply is pushing up prices and thwarting many would-be home buyers. The median home price jumped 5.5% in October from a year earlier. And homes were on the market for just 34 days, down from 41 a year ago.
The supply crunch is particularly acute among lower-priced homes. Builders are putting up more expensive houses to maximize profits.
“Selection is slim across the board, driving up prices, but even more so for those seeking less expensive and entry-level homes,” says Svenja Gudell, chief economist at Zillow. “Currently, roughly half of what’s available to buy is priced in the upper one-third of home values, leaving scant options for those aging millennials and young families trying to get their foot in the door.”
