Existing Home Sales fell 4.1% from September to October to a 3.79-million-unit annualized pace, reaching a 13-year low, per the National Association of REALTORS® (NAR). Sales were also 14.6% lower than they were in October of last year. This report measures closings on existing homes and is a critical gauge for taking the pulse of the housing sector.

What’s the bottom line? The NAR noted that elevated mortgage rates and tight inventory remain key constraints on home sales. There were 1.15 million homes available for sale at the end of October, down from 1.22 million a year earlier and nearly half the levels seen in 2019. Plus, inventory is even tighter than that figure implies, as many homes counted in existing inventory are under contract and not truly available for purchase. In fact, there were only 737,000 “active listings” at the end of last month.

Despite these ongoing inventory constraints, homes continue to sell quickly (averaging just 23 days on the market in October). And 66% of homes sold in less than a month, showing that demand is strong for what’s available. In fact, the NAR noted that multiple offers are still occurring, especially on starter and mid-priced homes.

Yet, there was positive news for buyers as well. NAR’s Chief Economist, Lawrence Yun, noted that housing inventory is expected to improve heading into the spring.