Sales of existing homes rose 0.7% in November to an adjusted annual rate of 5.61 million from a downwardly revised 5.57 million in October, the highest rate since February, 2007 and 15.4% ahead of November 2015, the National Association of Realtors reported Wednesday.
The gain was led by big surge in the Northeast, which was up 8.0% to an annual rate of 810,000, 15.7% above a year earlier. The median price in the Northeast was $263,000, up 3.3% from November 2015. The South, the largest region, was up 1.4% to an annual rate of 2.22 million, 11.6% above November 2015. The median price in the South was $206,900, up 9.2% from the same month last year.
Existing-home sales in the West declined 1.6% to an annual rate of 1.25 million in November, still 19.0% higher than a year earlier. The median price in the West was $345,400, up 8.5% from November 2015. In the Midwest, existing-home sales decreased 2.2% to an annual rate of 1.33 million in November, 18.8% ahead of last November. The median price in the Midwest was $180,300, up 6.5% from a year ago.
Nationally, single-family home sales declined 0.4% to a seasonally adjusted annual rate of 4.95 million in November from 4.97 million in October but are still 16.2% above the 4.26 million pace a year ago. The median existing single-family home price was $236,500 in November, up 6.8% from November 2015. The median existing-home price for all housing types in November was $234,900, up 6.8% from November 2015 ($220,000). November’s price increase marks the 57th consecutive month of year-over-year gains.
Existing condominium and co-op sales jumped 10.0% to a seasonally adjusted annual rate of 660,000 units in November and are now 10.0% above a year earlier. The median existing condo price was $222,600 in November, up 5.8% from November, 2015.
Lawrence Yun, NAR chief economist, says it’s been an outstanding three-month stretch for the housing market as 2016 nears the finish line. “The healthiest job market since the Great Recession and the anticipation of some buyers to close on a home before mortgage rates accurately rose from their historically low level have combined to drive sales higher in recent months,” he said. “Furthermore, it’s no coincidence that home shoppers in the Northeast — where price growth has been tame all year — had the most success last month.”
Total housing inventory at the end of November dropped 8.0% to 1.85 million existing homes available for sale, down 9.3% percent from a year ago (2.04 million) and has fallen year-over-year for 18 straight months. Unsold inventory is at a 4.0-month supply at the current sales pace, which is down from 4.3 months in October.
“Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017,” added Yun. “Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country.
First-time buyers accounted for 32% of sales in November, down from 33% in October but up from 30% a year ago. NAR’s 2016 Profile of Home Buyers and Sellers — released on November 5 — revealed that the annual share of first-time buyers was 35% (32% in 2015), which is the highest since 2013 (38%).
“First-time buyers in higher priced cities will be most affected by rising prices and mortgage rates next year and will likely have to stretch their budget or make compromises on home size, price or location,” said Yun.
Properties typically stayed on the market for 43 days in November, up from 41 days in October but down considerably from a year ago (54 days). Short sales were on the market the longest at a median of 110 days in November, while foreclosures sold in 55 days and non-distressed homes took 41 days. 42% of homes sold in November were on the market for less than a month.
Inventory data from Realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in November were Billings, Mont., 23 days; San Jose-Sunnyvale-Santa Clara, Calif., 41 days; San Francisco-Oakland-Hayward, Calif., 42 days; Nashville-Davidson-Murfreesboro-Franklin, Tenn., 45 days; and Provo-Orem, Utah, at 46 days.
All-cash sales were 21% of transactions in November, down from 22% in October and 27% a year ago. Individual investors, who account for many cash sales, purchased 12% of homes in November, down from 13% in October and 16% a year ago. 58% of investors paid in cash in November, which matches the lowest share since August 2009.
Distressed sales 6 — foreclosures and short sales — rose to 6% in November, up from 5% in October but down from 9% a year ago. 4% of November sales were foreclosures and 2% were short sales. Foreclosures sold for an average discount of 17% below market value in November (18% in October), while short sales were discounted 16% (unchanged from October).
