Existing-home sales inched up 0.8% in November compared with October to a seasonally adjusted annual rate of 3.82 million – the first increase in five months, according to the National Association of Realtors (NAR).
Year-over-year, existing-home sales were down 7.3%.
The median existing-home sales price increased 4.0% from November 2022 to $387,600.
The inventory of unsold existing homes slid 1.7% from the previous month to 1.13 million at the end of November, or the equivalent of 3.5 months’ supply at the current sales pace.
Among the four major U.S. regions, sales climbed in the Midwest and South but receded in the Northeast and West. All four regions experienced year-over-year sales decreases.
NAR includes sales of townhomes, condominiums and co-ops in with its results.
“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,” says Lawrence Yun, chief economist for NAR, in a statement. “A marked turn can be expected as mortgage rates have plunged in recent weeks.”
According to Freddie Mac, the average rate for a 30-year fixed rate mortgage was 6.95% as of December 14, falling below 7% for the first time since August.
“Home prices keep marching higher,” Yun adds. “Only a dramatic rise in supply will dampen price appreciation.”
Photo: Breno Assis