Luxury Housing Markets Make Double-Digit Gains; Low Jumbo Mortgage Rates Persist

• The housing market stayed strong in September, according to the latest data from the National Association of REALTORS® (NAR). 

The number of homes sold on a seasonally-adjusted, annual basis topped 5 million for the fifth straight month nationwide last month-- the first time that's happened since mid-2007.

Homes at "luxury" price points are driving the market.

Home Supply Remains Scarce; Values Rise

5.29 million homes were sold in September on a seasonally-adjusted, annualized basis. It's a 100,000 unit drop from the month prior and the second-highest reading of the year. As compared to one year ago, U.S. home resales are 11% higher.

In addition, sales volume increased across all price tiers in September except for the lowest. Sales of homes selling for $1,000,000 or more rose 40% as compared to last year. Nationwide, supply remains constricted.

At the current pace of sales, the nation's 2.21 million homes for sale would be sold in 5.0 months.

Home supply of less than six months is thought to represent a "Seller's Market"; one in which sellers maintain price and negotiation leverage over buyers. Supply has been south of six months since August 2012. 

Home values have climbed close to 10 percent, on average, over the same period of time.

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