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Residential home sales receive boost in October

Posted on Wednesday, December 4, 2013 at 10:03:21 AM

Homebuyers with affordable residential financing appeared to be more active during October, as the total number of sales during the month increased on both a monthly and yearly level.

According to recent data from the U.S. Census Bureau and the Department of Housing and Urban Development, new single-family homes sold quite well compared to both September and the same time in 2012.

In total, October sales reached a seasonally-adjusted annual rate of 444,000, more than 25 percent higher than September's rate and 21.6 percent above October 2012's estimate of 365,000.

The average sales price for these types of properties was $321,700 for the month, as well. There was also a seasonally-adjusted estimate of new houses for sale of 183,000, representative of a 4.9 month supply given the current sales rate.

In addition, the added sales could be fueled by a faster foreclosure process in some markets. Buyers who have had trouble making residential financing payments are common in regions hit hard by the economy, but recovery could be tied to how quickly those houses get sold.

According to the Los Angeles Times, recovery is fueled by a fast foreclosure process. Essentially, states with laws that allow these homes to proceed quickly are currently performing better. Those without often have a number of properties stuck in vacancy.