November saw a 4.8% increase in previously owned home sales over October, according to the National Association of Realtors. This resulted in a yearly rate of 4.15 million units, adjusted for season.
Compared to November 2023, sales increased 6.1%. This is the biggest annual growth in three years and the third-highest pace of the year.
Contracts were probably signed in September and October because this count is based on closings. October saw a sharp increase in mortgage rates after they had dropped to an 18-month low in September.
Lawrence Yun, the NAR’s top economist, stated that momentum in home sales is increasing. Due to the economy’s ongoing job growth, rising housing inventory compared to a year ago, and customers adjusting to the new normal of mortgage rates between 6% and 7%, more buyers have entered the market.
At the end of October, there were 1.33 million available residences, a 17.7% increase over November of the previous year. That is equivalent to a 3.8-month supply at the current rate of sales. A six-month supply is regarded as equitable for both the buyer and the supplier.
Price pressure persisted as a result of such limited supply. In November, the median price increased 4.7% year over year to $406,100. That yearly comparison is increasing once more. In October, prices increased by 4% yearly.
Price gains were strongest in the Northeast and Midwest, at 9.9% and 7.3% respectively. Approximately 18% of properties sold for more than their asking price.
First-time homebuyers gained some ground, representing 30% of November sales, up from 27% in October but slightly lower than a year ago. 25% of sales are still made in cash. Investors, however, pulled back at just 13% of sales, down from 18% in November of last year.
Is this an indication where investors or more number-crunching people think that home prices are at the top? Or is another reason that rents are no longer rising? Yun asked.
The biggest sales gains continue to be on the higher end of the market. Sales of homes priced over $1 million surged 24.5% from November of last year, while sales of homes priced below $100,000 dropped 24.1%.
Mortgage rates are higher again today, with the average rate on the 30-year fixed surging 21 basis points Wednesday, following the latestFederal Reservemeeting. Fewer Fed rate cuts are now expected next year.
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