WASHINGTON, (Reuters) – U.S. home sales surprisedly rose in October. However, higher prices and tight supply continue to be a problem for first-time buyers.

According to the National Association of Realtors, existing home sales increased 0.8% to 6.34 Million units in a seasonally adjusted annual pace last month.

Reuters polled economists and predicted that sales would fall to 6.20 millions units. The most accessible Midwest and densely populated South saw sales rise, while they fell in Northeast. They also declined in the West which was the most costly region.

The bulk of U.S. house sales are through home resales. They fell 5.8% year-on-year.

The COVID-19 pandemic saw Americans seeking more room for their home offices or online education, and sales soared last summer.

The pandemic tailwind was reduced by vaccinations, which allow workers to return home to their offices. Schools can also reopen for learning in person. Even though sales fell from 6.73 million units per month in October 2020, the demand for housing is strong and still faces modest supply.

In October, the median price of an existing home rose 13.1% to $353,900 from one year before. The number of homes that were previously owned was 1.25million, which is 12% less than a year earlier.

Last week’s government data showed that single-family homebuilding declined sharply in October. It also had the highest backlog of construction in 15 years, due to labor shortages. This could increase housing stock if supply restrictions ease.

It would take approximately 2.4 months for the inventory to be exhausted at October’s current sales rate, compared with 2.5 months last year. The supply of six to seven months is considered a balanced supply-demand ratio. Last month’s sales saw 29% growth in first-time buyers, compared to 32% one year earlier.