But supply shortages continue to push home prices out of reach Here?s the good news: Housing markets ravaged by hurricanes earlier this year appear to be recovering faster than expected. The bad news is that housing inventory shortages continue to push home prices higher, keeping many would-be buyers out of the market.
The National Association of Realtors (NAR) released its monthly existing home sales data on Tuesday. Existing home sales surged 2 percent in October compared to a month ago, led by gains in Houston and Florida, where hurricane-related issues are beginning to recede. But sales are down year-over-year by 0.9 percent, a trend largely attributed to inventory shortages.
?While the housing market gained a little more momentum last month, sales are still below a year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated,? said NAR chief economist Lawrence Yun. For prospective first-time home buyers, the NAR report reiterates trends that have for years kept them from making the jump from renter to buyer. The backlog of homes foreclosed upon during the financial collapse is largely empty now, and property turnover has slowed dramatically.
This has led to a steady decline in the available existing homes for sale. Inventory of existing homes for sale was 1.8 million in October, a 3.2 percent decrease from a month ago and a 10.4 percent decrease from a year ago.

Construction of new homes has also lagged becau...