U.S. existing home sales rise over 9-year high in October, provides boost for Q4 start

Existing home sales in the United States rose to over 9-year high during the month of October, providing a healthy boost at the start of the fourth quarter. Also, demand for housing properties rose during the period, following extremely low mortgage rates in the country.

US existing home sales rose 2.0 percent in October to an annual rate of 5.60 million from an upwardly-revised 5.49 million the previous month, which was originally reported at 5.47 million, data released by the National Association of Realtors showed Tuesday. Sales were above expectation of 5.45 million and the highest rate since February 2007, exceeding the previous 2016 peak seen for June.

The median price for all housing types increased to USD232,000 for the month, an annual increase of 6.0 percent and the 56th consecutive annual advance. The total housing inventory for sale declined to 2.02mn to register a 4.3 percent annual decline, the 17th consecutive decline and unsold inventory declined to 4.3 months supply at the current sales pace from 4.4 months previously.

Further, sales increased across all four regions on the month and there were also annual increases across all four with a 10.4 percent annual increase for the West. First-time buyers accounted for 33 percent of sales from 34 percent in September and 31 percent in October 2015.

"Consumers certainly were in October, showing no hesitation whatsoever ahead of the presidential elections with its often harsh rhetoric and focus on all the things wrong with the economy," Reuters reported, citing Chris Rupkey, Chief Economist, MUFG Union Bank in New York.

Moreover, sales advanced in all four regions, led by a 2.8 percent gain in the South and a 2.3 percent rise in the Midwest. According to the Chief Economist of NAR, Lawrence Yun, the association projects a small sales gain in 2017 to 5.46 million from an expected 5.36 million this year; prices are forecastd to climb 4 percent in 2017.

Meanwhile, the US dollar index is trading 0.02 percent lower at 101.01, while at 5:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -1.39 (higher than the -75 benchmark for bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex