Existing-home sales show growth in November
After five straight months of declines, existing-home sales pulled ahead slightly in November.
Total existing-home sales in November increased 0.8% to a seasonally adjusted annual rate of 3.82 compared to the prior month, the National Association of Realtors (NAR) reported this morning.
On a year-over-year basis, sales are down 7.3% from 4.12 million in November 2022. Sales include completed transactions of single-family homes, townhomes, condominiums, and co-ops.
Single-family home sales increased to a seasonally adjusted annual rate of 3.41 million in November, up 0.9% from 3.38 million in October but down 7.3% from the prior 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 NAR Chief Economist Lawrence Yun. “A marked turn can be expected as mortgage rates have plunged in recent weeks.”
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.95% as of December 14, falling below 7% for the first time since August 10. That’s down from 7.03% the previous week but up from 6.31% one year ago.
The median existing-home price for all housing types in November was $387,600, a 4% increase from a median price of $372,700 in November 2022.
The median existing single-family home price was $392,100 in November, up 3.5% from November 2022.
“Home prices keep marching higher,” Yun noted. “Only a dramatic rise in supply will dampen price appreciation.”
Total housing inventory registered at the end of November was 1.13 million units, down 1.7% from October but up 0.9% from 1.12 million units a year ago. Unsold inventory sits at a 3.5-month supply at the current sales pace, down from 3.6 months in October but up from 3.3 months in November 2022.
The latest housing starts report, released yesterday, actually jumped ahead in November to its highest level since May. Total starts increased 14.8% to a seasonally adjusted annual rate of 1.560 million compared to the revised October estimate of 1.359 million. The latest Monthly New Construction Report is also 9.3% ahead of the November 2022 rate of 1.427 million.
Single‐family starts in November also surged by 18% to a rate of 1.143 million compared to the revised October figure of 969,000.
Here’s how existing-home sales and prices break down regionally.:
- Existing-home sales in the Northeast slipped 2.1% from October to an annual rate of 470,000 in November, down 13% from November 2022. The median price in the Northeast was $428,600, up 4.8% from the prior year.
- In the Midwest, existing-home sales rose 1.1% from the previous month to an annual rate of 940,000 in November, down 8.7% from one year ago. The median price in the Midwest was $280,800, up 4.9% from November 2022.
- Existing-home sales in the South improved 4.7% from October to an annual rate of 1.77 million in November, a decline of 4.3% from the prior year. The median price in the South was $351,500, up 3.4% from last year.
- In the West, existing-home sales slumped 7.2% from a month ago to an annual rate of 640,000 in November, down 8.6% from one year before. The median price in the West was $603,200, up 5.3% from November 2022.
