Year-over-year sales were up 6.1%
of ConsumerAffairsThe U.S. housing market experienced a significant uptick in existing home sales in November. The National Association of Realtors reports sales increased by 4.8% from October, reaching a seasonally adjusted annual rate of 4.15 million, the fastest pace observed since March 2024.
Sales were up 6.1% compared to November 2023, the largest year-over-year gain since June 2021. Sales rose despite mortgage rates that fluctuated between 6.5% and 7%.
As the number of sold homes rose, so did their price. The median price for existing homes increased by 4.7% from the previous year to $406,100. This marks the 17th consecutive month of year-over-year price increases, reflecting sustained demand in the housing market in spite of higher mortgage rates.
Inventory levels, however, showed a slight decline. The total inventory of unsold existing homes decreased by 2.9% from October, settling at 1.33 million units by the end of November. This represents a 3.8-month supply at the current sales pace, a decrease from the 4.2-month supply recorded in October, but an increase from the 3.5-month supply in November 2023.
"Home sales momentum is building," said Lawrence Yun, NAR's chief economist. "More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%."
Sales grew in three regions of the country
The growth in sales was observed across three major U.S. regions, with the West maintaining steady levels. Year-over-year, all four regions reported increased sales, highlighting a broad-based recovery in the housing market.
Existing homeowners are leveraging the substantial $15 trillion rise in housing equity over the past four years, seeking homes that better suit their evolving life circumstances, according to Yun.
As the market adapts to these changes, NAR says the continued rise in home prices and sales suggests a robust demand, despite the challenges posed by fluctuating mortgage rates. The housing market's resilience is a positive indicator for the broader economy, reflecting consumer confidence and economic stability.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-12-19 18:42:46
