• Existing-home sales jumped from the previous month to an annual rate of 6.46 million
• November sales were down 2 percent year on year
U.S home sales increased 1.9 percent in November from October, marking three consecutive months of growth, according to the National Association of Realtors.
The National Association of Realtors said Wednesday that existing-home sales jumped from the previous month to a seasonally adjusted annual rate of 6.46 million, the highest rate since January. November sales were down 2.0 percent year on year.
“Determined buyers were able to land housing before mortgage rates rise further in the coming months,” said Lawrence Yun, NAR’s chief economist. “Locking in a constant and firm mortgage payment motivated many consumers who grew weary of escalating rents over the last year.
The total housing inventory at the end of November was 1.11 million units, a 9.8 percent decrease from October and a 13.3 percent decrease from a year earlier (1.28 million). At the current sales rate, unsold inventory has a 2.1-month supply, a decrease from both the previous month and a year ago.
Home prices have risen as buyers battle for a limited number of available properties on the market. According to NAR, the median existing-home price increased 13.9 percent year on year in November to $353,900.
Yun explained supply-chain interruptions for new house construction and labor shortages have hampered bringing more inventory to the market due to which house prices continue to march higher.
Regional Breakdown
In November, existing-home sales in the Northeast remained flat compared to the previous month and recorded an annual pace of 760,000 while in the Midwest it increased by 0.7 percent to 1,520,000.
In the South increased 2.9 percent in November, to a yearly rate of 2,850,000 whereas in the West it climbed 2.3 percent in November, hitting an annual average of 1,330,000.
Picture Credits: CNBC