Existing home sales surge, still behind last year’s levels

Several banks have halted foreclosures in states where the courts are investigating possible paperwork problems. 

Federal officials and the banks are pushing for a fast review to keep foreclosures sales moving because distressed sales, which include foreclosures and short-sales, made up 35 percent of total sales in September.

The number of previously occupied homes on the market dropped 1.9 percent, leaving an inventory of properties that would take nearly 11 months to sell, the report said. 

NAR says the inventory of unsold properties needs to decrease more for housing prices to stabilize. 

“Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path,” Yun said. “Inventory remains elevated and continues to favor buyers over sellers. A normal seasonal decline in inventory is expected through the upcoming months.”