What's going on?

Fresh data out last week showed US existing home sales hit a 14-year high in October, so you�d better get ready to welcome some friendly new faces into your neighborhood (tweet this).

What does this mean?

Sales of previously owned US homes climbed by 4.3% last month compared to the month before, bringing the annualized number of home sales � that is, the number over the next 12 months if October�s pace were maintained � to almost seven million. That�s the highest level since February 2006, while the all-time highs of 2005 might�ve been beaten too if the supply of homes wasn�t the lowest on record. So it makes sense that prices are on the rise as well, with the median selling price for a home jumping 15.5% from a year ago.


While we�re on the subject of record lows: US mortgage rates are now at their lowest since tracking began, which is arguably driving this whole house-buying bonanza. It�s probably not worth getting too excited, though: that�s the 13th time the record�s been broken this year�

Why should I care?

For markets: Build a better tomorrow.

With the shortage of existing homes boosting demand for new ones, the S&P Homebuilders index � which tracks stocks in the homebuilding industry � has outperformed the overall US stock market by 14% this year. Eager home-builders are certainly playing their part: the construction of one-family homes � the biggest portion of the housing market � just hit its fastest pace since 2007.

The bigger picture: What�s next?

The National Association of Realtors � the organization behind most of this data � reckons the housing market will keep growing into 2021. In fact, it�s said existing home sales will be 10% higher next year thanks to still-low mortgage rates and the impending coronavirus vaccine. As for how much value your framed �Live. Laugh. Love.� calligraphy will add to your bohemian apartment, it just can�t say.