U.S. existing home sales rise to almost 10-year high in October

Existing home sales in the United States rose in October to an almost 10-year high, as wage rise was releasing pent-up demand, an industry report showed Tuesday.

Total existing home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, grew 2 percent from the previous month to a seasonally adjusted annual rate of 5.6 million in October, said the National Association of Realtors (NAR).

Sales pace is now 5.9 percent above a year ago, reaching the highest level since February 2007, said the NAR.

"October's strong sales gain was widespread throughout the country and can be attributed to the release of the unrealized pent-up demand that held back many would-be buyers over the summer because of tight supply," said NAR chief economist Lawrence Yun in a statement.

"Tightening labor market is beginning to push up wages and the economy has lately shown signs of greater expansion," said Yun, adding "these two factors and low mortgage rates have kept buyer interest at an elevated level so far this fall"

Total housing inventory at the end of October declined 0.5 percent to 2.02 million existing homes available for sales, which represents a 4.3-month supply at the current sales pace, lower than the 4.4 months in September. Compared with the data in October 2015, total housing inventory is 4.3 percent lower.

The median existing home price for all housing types in October was 232,200 U.S. dollars, 6 percent above the level a year ago, making the 56th consecutive month of year-over-year gains. Enditem