U.S. home re-sales fell in October, as rising mortgage rates, higher property prices, an inventory shortage, and the partial government shutdown limited transactions, an industry group reported Wednesday. The National Association of Realtors (NAR) said sales of existing homes fell 3.2 percent last month to an annual rate of 5.12 million units, down from a 5.29 million pace in August and the slowest pace since June. Sales of existing single-family homes declined 4.1 percent, while volatile apartment sales rose 3.3 percent. The median sales price of a previously owned home was up 12.8 percent from a year earlier in October, the 11th consecutive month of annual price increases above 10 percent. However, first-time homebuyers accounted for only 28 percent of sales, far below the 40 percent typically seen in healthier housing markets. Sales in coming months are expected to be limited by a lack of inventory on the market and the government shutdown that has halted some final property transactions. The NAR said a combination of high home prices and increased mortgage rates was hurting affordability. The trade group said the rate of newly constructed homes was disappointing and limiting the broader housing-market recovery.
