Existing-home sales grew slightly in November, breaking a streak of five consecutive monthly declines, according to the National Association of Realtors (NAR).
Total existing-home sales, or completed transactions that include single-family homes, townhomes, condominiums, and co-ops, increased 0.8% from October to a seasonally adjusted annual rate of 3.82 million in November. Year over year, sales fell 7.3%, down from 4.12 million in November 2022.
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.
“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 NAR chief economist Lawrence Yun. “A marked turn can be expected as mortgage rates have plunged in recent weeks.”
At the end of the month, total housing inventory was 1.13 million units, down 1.7% from October but up 0.9% from one 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 median existing-home price for all housing types in November was $387,600, an increase of 4% from November 2022. All four U.S. regions posted price increases.
“Home prices keep marching higher,” adds Yun. “Only a dramatic rise in supply will dampen price appreciation.”
According to the monthly Realtors Confidence Index, properties typically remained on the market for 25 days in November, up from 23 days in October and 24 days in November 2022. Sixty-two percent of homes sold in November were on the market for less than a month.
First-time buyers were responsible for 31% of sales last month, up from 28% in October and November 2022. All-cash sales accounted for 27% of transactions. Individual investors or second-home buyers purchased 18% of homes, and distressed sales represented 1% of sales.
Single-family home sales increased to a seasonally adjusted annual rate of 3.41 million, up 0.9% from 3.38 million in October but down 7.3% from the prior year. The median existing single-family home price was $392,100, up 3.5% from November 2022.
Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 410,000 units, identical to October and down 6.8% from one year ago. The median existing condo price was $350,100 in November, up 8.6% from the previous year.
