U.S. existing-home sales, prices down in October

Existing-home sales and prices fell in October, the U.S. National Association of Realtors said Monday.

The national median existing-home price was $183,300 US in October, down 11.3 per cent from $206,700 in October 2007. "There remains a significant downward distortion in the current price from a large number of distress sales at discounted prices," the group said in a news release.

The number of existing-home sales fell 1.6 per cent in October from October 2007 to a seasonally adjusted annual rate of 4.98 million units.

That's down 3.1 per cent from the annual rate of 5.14 million sales reported in September, but September was unusual in that it showed an increase from August.

The buyers' caution is understandable, association chief economist Lawrence Yun said. "Many potential home buyers appear to have withdrawn from the market due to the stock market collapse and deteriorating economic conditions."

Most existing home sales are single-family residences, with condominiums and co-ops accounting for about one-eighth of the total.

Single-family home sales fell 3.3 per cent to a seasonally adjusted annual rate of 4.43 million, unchanged from October 2007. The median price was $181,800, down 11.2 per cent over a year.

Existing condominium and co-op sales slipped 1.8 per cent to a seasonally adjusted annual rate of 550,000 units, 12.0 per cent below the October 2007 level. The median existing condo price was $193,000, down 13 per cent from October 2007.

Yun said that despite the overall drop in October, sales rose in many California and Florida markets, and Boston, Minneapolis and Denver.