The latest report from the National Association of Realtors states that sales of existing homes in September increased 3.2 percent from August to a seasonally adjusted annual rate of 5.47 million which is the highest rate since June.
Analysts agree that the demand for homes is strong backed up by a growing job market and continued low martgage rates. Unfortunately the supply of homes is weak.
The supply of available homes stood at 2.04 million units which is down 6.8 percent from a year ago. Not surprisingly, this tight inventory has driven up the median price of existing homes nationwide 5.6 percent over a year ago.
Interestingly, NAR reports that first-time home buyers accounted for 34 percent of purchases, the most since July 2012.