Consumers purchased more homes in October 2014 than they did in October 2013, according to the National Association of Realtors.
The association reported sales of existing homes rose by 1.5% in October. Sales were at their highest annual pace since September 2013 and are now above year-over-year levels.
"Sales activity in October reached its highest annual pace of the year as buyers continue to be encouraged by interest rates at lows not seen since last summer, improving levels of inventory and stabilizing price growth," NAR Chief Economist Lawrence Yun said.
"Furthermore, the job market has shown continued strength in the past six months," he added. "This bodes well for solid demand to close out the year and the likelihood of additional months of year-over-year sales increases."
Home prices also rose as well, hitting a median price for all home types of $208,300, according to NAR. That's 5.5% over where prices were in October 2013. This was the 32nd consecutive month of year-over-year price gains, the association reported.
"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," Yun said. "However, more housing starts are needed to increase supply, meet current demand and keep price growth in check."
In October, first time homebuyers accounted for 29% of home purchases. The month marked the fourth straight month for that percentage, according to NAR.
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