It marks the end of the five-month streak of decreases
Existing-home sales in November saw a slight increase, breaking the five-month streak of monthly declines, according to data released by the National Association of Realtors (NAR).
Total existing-home sales, completed transactions including single-family homes, townhomes, condominiums, and co-ops, in November saw a 0.8% increase from the previous month which amounted to a seasonally adjusted annual rate of 3.82 million. However, sales still fell by 7.3% year-over-year.
Within the four major regions in the US, sales saw an increase in the Midwest and South while receding in the Northeast and West with all four regions experiencing sales decreases year-over-year.
“The latest weakness in existing home sales still reflects the buyer bidding process in most of October when mortgage rates were at a two-decade high before the actual closings in November,” said Lawrence Yun, NAR’s chief economist.
“A marked turn can be expected as mortgage rates have plunged in recent weeks,” he added. The 30-year fixed-rate mortgage averaged 6.95% as of December 14, according to Freddie Mac.
At the end of November, total housing inventory registered was 1.13 million units which was a 1.7% decrease from the previous month, but a 0.9% increase from one year ago. Unsold inventory stood at a 3.5-month supply at the current sales pace.
The median existing-home price for all housing types in November was $387,600, which was a 4% increase year over year, with all four regions seeing price increases.
“Home prices keep marching higher. Only a dramatic rise in supply will dampen price appreciation,” said Yun.
Existing home sales in November
The monthly REALTORS Confidence Index found that properties typically stayed on the market for 25 days in November which was an increase from the 23 days in October and 24 days year-over-year. About 62% of homes sold were on the market for less than a month.
First time buyers took up 31% of sales in November. NAR’s 2023 Profile of Home Buyers and Sellers found that the annual share of first-time buyers was 32%.
Single-family home sales saw an increase to a seasonally adjusted annual rate of 3.41 million with the median existing single-family home price at $392,100 in November. Existing condominium and co-op sales saw a seasonally adjusted annual rate of 410,000 units while median existing condo prices stood at $350,100.
In the Northeast, existing-home sales dropped by 2.1% from the previous month, amounting to an annual rate of 470,000 in November, with the median price being $428,600. In the Midwest, existing-home sales rose 1.1% from October to an annual rate of 940,000, with the median price being $280,800.
In the South, there was a 4.7% improvement month-over-month with an annual rate of 1.77 million and a median price of $351,500. In the West, existing-home sales dropped by 7.2% from the previous month to an annual rate of 640,000 and a median price of $603,200.
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