The number of contract signings grew 7.5 percent from September to October, the National Association of Realtors reports.
Inventory across all housing types fell 0.8 percent from the month previous and 12 percent year over year to 1.25 million units. Nonetheless, home sales are expected to exceed 6 million by the end of the year.
At the National Association of Realtors' national conference on Friday, NAR Chief Economist Lawrence Yun shared promising insights about 2022.
The median sales price of single-family existing homes increased in 99 percent of the 183 markets measured by the National Association of Realtors, while 78 percent of markets saw double-digit price gains.
Slowed contract signings in September are a likely sign that home price growth will soon come back down to earth, NAR Chief Economist Lawrence Yun said.
Existing-home sales made a rebound in September following a dip in sales in August, NAR reported. All four major U.S. regions saw an increase in sales from the previous month.
Existing-home sales declined 2 percent between July and August to a seasonally adjusted annual rate of 5.88 million, with all geographical regions in the U.S. seeing monthly and annual declines.
Total existing-home sales in July 2021 rose 2 percent on a seasonally adjusted annual basis from June to a rate of 5.99 million, according to the National Association of Realtors.
The median existing single-family home price rose 22.9 percent year over year during the second quarter of 2021, according to NAR.
Pending home sales dropped 1.9 percent in June and 1.9 percent year over year to an index of 112.8, according to the National Association of Realtors' Pending Home Sales Index, released Thursday.
The trade group will be able to use "pre-move" data to inform reports on migration patterns and housing demand.
In a reversal from the previous month, pending-home sales decreased in all regions except the Midwest, which saw gains of 3.5 percent from March to April.