In a significant development for the housing market, the National Association of Realtors (NAR) has reported that existing-home sales across the United States rose by 4.8% in November, reaching a seasonally adjusted annual rate of 4.15 million units. This rise continues to reflect the resilience of the market even amidst fluctuating mortgage rates.
The upward trend in home sales is seen across various regions, with the South exhibiting a noteworthy increase. Sales in this region rose by 5.6% from October, reaching an annual rate of 1.87 million units, which marks a 3.3% growth compared to the previous year. Lawrence Yun, NAR Chief Economist, commented on this trend, stating, “Home sales momentum is building. 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%.”
The data reveals that the total housing inventory at the end of November stood at 1.33 million units. While this is a decrease of 2.9% from October’s figures, it signifies a 17.7% increase from the previous year. The unsold inventory currently represents a 3.8-month supply at the current sales pace, slightly down from October’s 4.2-month supply but a slight increase from 3.5 months in November the previous year.
The median existing-home price for all housing types in November was $406,100, marking a 4.7% rise from the same period last year. Each of the four major U.S. regions posted price increases, indicating a widespread strengthening of the housing market. Yun further noted that existing homeowners are leveraging the collective $15 trillion increase in housing equity over the past four years to explore new housing options that better fit their evolving needs.
The NAR’s monthly Realtors Confidence Index indicates changes in market dynamics as well, with properties remaining on the market for an average of 32 days in November, compared to 29 days in October and 25 days in November of the previous year. First-time buyers were responsible for 30% of the sales in November, slightly up from October but marginally down from the previous year.
The share of cash sales has also seen adjustments, making up 25% of transactions in November, down from the preceding months. Individual investors or second-home buyers made up a smaller portion of the market at 13% this November compared to higher percentages previously. Meanwhile, distressed sales have remained stable at 2%, showing consistency with last month and the previous year.
Mortgage rates as reported by Freddie Mac show minor fluctuations, with the 30-year fixed-rate mortgage averaging at 6.6% as of December 12, which is a slight decrease from the preceding week and a notable reduction from one year ago.
The breakdown by housing types shows single-family home sales increasing by 5.0% to a seasonally adjusted annual rate of 3.76 million units in November, with the median price of these homes rising to $410,900. In contrast, sales of existing condominiums and co-ops increased by 2.6% to 390,000 units, although this figure remains below last year’s numbers.
The November data highlights the dynamic nature of the U.S. housing market, showing considerable growth across various regions and housing types. As mortgage rates stabilize and economic conditions improve, more buyers are entering the market, suggesting a positive future outlook for home sales. This sustained momentum underscores the adaptability and robustness of the housing sector in navigating economic shifts.
Source: Floridarealtors
