The housing market finally flashed a green light that buyers haven't seen in four years.
Existing home sales jumped 3.4 percent in October compared to September, and more importantly, they're up 2.9 percent from a year ago — the first annual increase since July 2021, according to the National Association of Realtors.
For nearly three years, the resale market has been stuck in a deep freeze, with homeowners clinging to 3 percent mortgages and refusing to sell, while buyers got priced out by 7 percent rates.
Mortgage rates eased into the low 6 percent range this fall, giving buyers just enough breathing room to sign.
At the same time, more inventory hit the market — 1.37 million homes were for sale in October, up 19 percent from a year earlier.
More choices and slightly cheaper money pulled fence-sitters back in.
Here's the catch for anyone thinking about jumping in now.
The median existing home price hit $407,200 in October, up 4 percent from last year.
Prices aren't falling — they're still climbing, just at a slower pace.
If you've been waiting on the sidelines because your neighbor's house sat for 90 days last spring, the math has shifted.
Homes that are priced right and move-in ready are drawing multiple offers in many markets.
Overpriced listings are still rotting on the MLS.
For buyers, the news is more complicated.
No, that doesn't mean you should stretch your budget to the breaking point.
A 6.5 percent mortgage on a $400,000 home still runs roughly $2,530 a month before taxes and insurance.
Run the numbers with your real down payment before you fall in love with a listing.
First-time buyers, in particular, are still getting squeezed.
They made up just 27 percent of October sales, well below the historical norm of around 40 percent.
Investors and cash buyers are scooping up a bigger share, and that competition isn't going away.
What should you actually do with this information?
If you're renting and hoping to buy, get pre-approved now, not in spring when everyone else wakes up.
If you own a home with a low rate and need to move, ask a local agent to run a "buy now vs. wait" scenario — the gap between your old payment and a new one may be smaller than you think.
And if you're staying put, consider whether a HELOC makes more sense than selling, since you'd be trading a cheap mortgage for an expensive one.
The takeaway: the housing market is thawing, not booming.
Inventory is improving, rates are cooperating, and prices are still rising.
Final Thoughts
Move deliberately, not desperately, and let your budget, not the headlines, make the call.