by Year-over-year increase is the largest the NAR has reported since June 2021
WASHINGTON — Existing home sales picked up the pace in November, recording their largest year-over-year increase since June 2021.
According to the National Association of Realtors, sales rose 6.1% to 4.15 million units in November, from 3.91 million in November 2023 with sales rising in all four regions of the country. They also rose 4.8% from October, the NAR said. Month-over-month increases were reported in the Northeast, South and Midwest and were level in the West.
“Home sales momentum is building,” said NAR Chief Economist Lawrence Yun, noting that more buyers have entered the market as the the increase in jobs and housing inventory continues to grow, “and consumers get used to a new normal of mortgage rates between 6% and 7%.”
Single-family home sales totaled 3.76 million in November, a 7.4% increase that represented 90.6% of overall home sales. The median existing single-family home price was $359,800 in November, up from $350,100 a year earlier, up 2.8%. Condominium and co-op sales totaled 390,000 units, down 4.9% from 410,000 last year. The median condo price was $359,800, up 2.8% from $350,100 a year ago.
The report also noted that the total housing inventory registered at the end of November totaled 1.33 million units, up 17.7% from 1.13 million units in November 2023 and down 2.9% from October. The median existing home price for all types of residential units also rose in November, to $406,100, up 4.7% from $387,800 last year, with all four regions reporting a price increase. Unsold inventory represents a 3.8-month supply based on the current rate of sale. This is up from 3.5 months in November 2023, but down from 4.2 months in October.
“Existing homeowners are capitalizing on the collective $15 trillion rise in housing equity over the past four years to look for home sales better suited to their changing life circumstances,” Yun said.
By region, existing home sales were as follows:
+ In the Northeast, existing home sales totaled 510,000, up 6.3% from November and up 8.5% from October. The median home sale price in the region was $475,500, up 9.9% from November 2023.
+ In the Midwest, sales rose to 1 million, up 5.3% from November 2023 and up 5.3% from October. The median price was $302,000, up 7.3% from a year ago.
+ In the South, sales totaled 1.87 million in November, up 3.3% from last year, and up 5.6% from October. The median sales price in the region was $361,300, up 2.8% from November 2023.
+ In West, sales totaled 770,000, up 14.9% from last November and unchanged from October. The median sales price in the region was $628,200, up 4% from November 2023.
Other key takeaways from the report are as follows:
+ Properties typically remained on the market for 32 days in November, up from 25 days in November 2023 and up from 29 days in October.
+ First-time buyers represented 30% of sales in November, down from 31% in November 2023 but up from 27% in October.
+ Cash sales represented 25% of transactions in November, down 27% from November 2023 and October. Individual investors, or second-home buyers that account for many cash sales, purchased 13% of homes in November, down from 18% in November 2023 and down from 17% in October.
+ Distressed sales including foreclosures and short sales represented 2% of sales in November, unchanged from last year and October.
+ Freddie Mac reported that 30-year fixed mortgage rates averaged 6.6% as of Dec. 12, down from 6.95% in November 2023 and down from 6.69% a week earlier.
