Home Sales Rise for the First Time in Three Years

Home sales increased year over year for the first time in three years, signaling a potential market recovery. Learn what this means for buyers and sellers in the Greater Philadelphia Market.

For the first time in over three years, existing home sales increased year over year, reaching a seasonally adjusted annual rate of 3.96 million in October.

So, what exactly does this mean?

So glad you asked! Even though 2024 is shaping up to have the fewest home sales on record, the rise in sales this October could be a sign that the housing market is starting to recover.

After a long stretch of slowing home sales, data from the National Association of Realtors (NAR) shows three main trends that are worth paying attention to:

1. More homes are selling, and prices are still rising. Homeowners are seeing their equity grow as prices climb.

2. There’s more inventory to choose from. For buyers, the market is offering a bit more breathing room as the number of available homes rises.

3. Buyers are starting to come back. The year-over-year sales increase shows that demand is picking up, even with mortgage rates higher than in years past.

For homeowners, this means rising equity and an opportunity to sell at peak prices. For buyers, the growing inventory could finally offer a wider selection of homes to choose from.

Below, we’ll break down what’s behind the numbers, explore how rising prices and inventory are shaping the market, and share actionable insights for homeowners looking to take advantage of these trends. 

1. More Homes Are Selling, and Prices Are Still Rising

Homeowners, this one’s for you: the value of your home is likely continuing to grow. In October, the median existing-home price rose to $407,200—a 4% increase compared to last year. That’s the 16th straight month of year-over-year price growth.

Here in Philadelphia, the median home price was $266,000 in October, a 6.4% increase year over year. This shows that Philadelphia is still in demand and prices are steadily increasing.

For many sellers, this means a chance to cash in on rising equity. Lawrence Yun, Chief Economist for the National Association of Realtors, summed it up perfectly: “The ongoing price gains mean increasing wealth for homeowners nationwide.” 

Yun also expects home prices to continue rising over the next two years, predicting a 9% YoY increase in 2025 and a 13% YoY increase in 2026. 

2. There’s More Inventory to Choose From

For the past few years, buyers have faced limited options in the housing market. But that’s starting to change. The inventory of unsold homes rose 19% nationwide compared to last year, giving buyers more options than they’ve had in a while.

Locally, Philadelphia saw a 7.7% increase in housing inventory in October. 

This growing inventory means two things:

• For sellers: More competition. Preparing your home to stand out—through staging, pricing it competitively, and marketing—will be key.

• For buyers: A bit more choice and less pressure to bid on the first home you see.

If you’ve been waiting for the market to offer more balance, this could be the sign you’ve been waiting for.

3. Buyers Are Starting to Come Back

NAR’s report shows that home sales are up year over year—the first time we’ve seen this since July 2021. Even with elevated mortgage rates, buyers are finding ways to re-enter the market, driven by job stability and growing economic confidence.

While mortgage rates are still hovering around 6.78% for a 30-year fixed-rate loan, they’ve stabilized. And Yun predicts they could dip into the lower 6% range in 2025. 

This demand is creating a sweet spot for motivated sellers: buyers are ready, inventory is growing, and prices are holding steady.

Final Thoughts

If you’ve been considering selling, now may be a great time to act. With prices still rising and demand picking up, listing your home soon could help you attract serious buyers and secure a strong return. Just keep in mind that more inventory means your home needs to shine. Staging, high-quality photos, and competitive pricing are more important than ever.

For buyers, the good news is that you have more choices. The rising inventory is making it easier to find homes that fit your needs and budget. While mortgage rates are still higher than a few years ago, they’re stabilizing. If you’re ready to buy, the best strategy is to get pre-approved, understand your budget, and stay patient while exploring your options.

For those looking for more personalized insights, I’m happy to help.

Let's get ΓEA⅃
Christine Ertz
215-987-2961

Sources: National Association of Realtors