US Home Sales Rise to Fastest Pace Since March
Sales Accelerate 4.8% in November, Led by Wider Selection of Properties on the Market
Sales of previously occupied US homes rose in November to their fastest pace since March, with home shoppers encouraged by a wider selection of properties on the market, even as mortgage rates mostly ticked higher.
November Sales Figures
According to the National Association of Realtors, existing home sales rose 4.8% in November, from October, to a seasonally adjusted annual rate of 4.15 million. This represents the biggest year-over-year gain since June 2021, surpassing the 4.1 million pace economists were expecting.
Home Prices Continue to Rise
Home prices increased on an annual basis for the 17th consecutive month, with the national median sales price rising 4.7% from a year earlier, to $406,100.
Market Factors
Despite the increase in November and October, home sales are still running below last year’s pace, when they sank to a nearly 30-year low. Elevated mortgage rates and high prices have kept homeownership out of reach for many prospective buyers. The average rate on a 30-year mortgage slipped to just above 6% in September following the Federal Reserve’s decision to cut its main interest rate for the first time in more than four years. However, it has mostly risen since then.
Inventory Levels
Homebuyers who could afford to buy benefited from a pickup in the homes that are available. There were 1.33 million unsold homes at the end of last month, down 2.9% from October, but up 17.7% from November last year, NAR said. This translates to a 3.8-month supply at the current sales pace, down from a 4.2-month pace at the end of October last year, but up from 3.5-month pace in November last year. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.
Conclusion
Despite the increase in home sales, the market remains challenging for many prospective buyers. With elevated mortgage rates and high prices, it is crucial for policymakers to address these issues to make homeownership more accessible to a wider range of people.
FAQs
Q: What was the pace of home sales in November?
A: The seasonally adjusted annual rate of home sales was 4.15 million in November, a 4.8% increase from October.
Q: How does this compare to previous years?
A: This represents the biggest year-over-year gain since June 2021, surpassing the 4.1 million pace economists were expecting.
Q: What is the current state of the housing market?
A: The market remains challenging, with elevated mortgage rates and high prices keeping homeownership out of reach for many prospective buyers.
