Completed sales transactions of single-family homes, townhomes, condominiums and co-ops rose 1.5 percent to a seasonally adjusted annual rate of 5.26 million in October.

For the first time in 12 months, existing-home sales are above year-over-year levels, having risen in October for the second straight month according to the National Association of Realtors®.

Total existing-home sales rose 1.5 percent to a seasonally adjusted annual rate of 5.26 million in October from an upwardly-revised 5.18 million in September. This marks the highest annual pace since September 2013 (also
5.26 million).

"Buyers continue to be encouraged by interest rates at lows not seen since last summer, improving levels of inventory and stabilizing price growth," stated Lawrence Yun, NAR chief economist. "Furthermore, the job market has shown continued strength in the past six months. This bodes well for solid demand to close out the year and the likelihood of additional months of year-over-year sales increases."

The median existing-home price for all housing types in October was $208,300, which is 5.5 percent above October 2013 - the 32nd consecutive month of year-over-year price gains.

Total existing homes available for sale at the end of October fell 2.6 percent to 2.22 million, which represents a 5.1-month supply - the lowest since March. Unsold inventory is now 5.2 percent higher than a year ago.

"The growth in housing supply this year will likely prevent the drastic sales slowdown and coinciding spike in home prices we saw last winter due to low inventory," says Yun. "However, more housing starts are needed to increase supply, meet current demand and keep price growth in check."

All-cash sales were 27 percent of transactions last month, up from 24 percent in September but down from 31 percent in October of last year. Individual investors, who account for many cash sales, purchased 15 percent of homes.