Existing home sales in the U.S. rose 0.8% in October to a seasonally adjusted annualized rate of 6.34 million units, according to data released by the National Association of Realtors.

Sales were 5.8% lower than they were in October 2020 and the current figure outpaced the originally projected 6.2 million. Sales rose in the more affordable Midwest and Southern regions while falling in the Northeast and remaining unchanged in the West.

The contracts for the recently sold homes were likely signed in August and September since the closing process may take a month or two to complete. Demand for homes skyrocketed a year ago during the worst of the pandemic.

As more people continue to get vaccinated and return to everyday life, housing demand remains strong. Realtors are projecting full-year sales of over 6 million, which would be the highest number since 2006.

“Sales remain very strong and I would attribute that to continuing job additions,” Lawrence Yun, NAR chief economist, told CNBC.

Yun added the increase in homebuyers has likely been caused by the rising price of rent. First-time homebuyers represented 29% of the market when they usually make up around 40%.

There are about 1.25 million homes on the market, marking a 2.4-month supply of inventory at the current sales pace. The median price of an existing home is $353,900 with an average mortgage rate of 3.16%.

RELATED STORIES