Falling more than expected, regions which have realized the largest price increases saw the largest declines, although sales rose by 3.9 percent over last October. Nevertheless, sales are on track to record their best annual rate in eight years, according to cnbc.
Household formation is increasing, boosted by a strengthening economy and lower unemployment, but the low inventory of houses for sale has driven up prices, crippling would-be first-time homebuyers. Economists had predicted the SAAR for October would be 5.40 million.
Sales last month fell 8.7 percent in the West and 3.2 percent in the south, two regions that have witnessed large price increases because of tight inventory. In the Midwest sales slipped 0.8 percent, and were unchanged in the Northeast. ##
(Image credit: CNNMoney–house prices slide)
