The latest data on sales of previously owned homes in the United States paints a positive picture, showing a notable increase in activity during the month of November. This uptick in sales marked the quickest pace seen since March, a development bolstered by the growing variety of properties available for potential buyers to choose from. Despite the backdrop of rising mortgage rates, prospective homeowners were evidently undeterred, seizing the opportunity presented by the wider selection in the market.
According to the National Association of Realtors, existing home sales experienced a 4.8% surge in November compared to the previous month, reaching a seasonally adjusted annual rate of 4.15 million units. This increase signifies a significant improvement and reflects the strong interest among buyers during this period. Moreover, when compared to November of the previous year, sales showed an impressive rise of 6.1%, marking the most substantial year-over-year growth observed since June of 2021.
Economists’ expectations were surpassed by the robust performance of the housing market, with the actual sales figures exceeding the anticipated pace of 4.1 million units. This unexpected strength in sales further underscores the resilience and vitality of the real estate sector, defying initial projections and showcasing the continued appeal of homeownership in the current landscape.
In line with the heightened sales activity, home prices continued their upward trajectory, posting gains for the 17th consecutive month on an annual basis. The national median sales price rose by 4.7% compared to the same period a year ago, now standing at $406,100. This consistent appreciation in prices highlights the sustained demand for housing and underlines the value that buyers place on owning a property in the present market conditions.
Despite the overall positive trends, the inventory of unsold homes witnessed some fluctuations in November. There were 1.33 million unsold homes at the end of the month, reflecting a slight decrease of 2.9% from October levels. However, this figure represented a notable increase of 17.7% compared to the inventory available in November of the previous year, indicating a shift in supply dynamics within the housing market.
At the current sales pace, the existing inventory translates to a 3.8-month supply, a slight decline from the 4.2-month supply recorded at the end of October the previous year. Nevertheless, this figure marks an increase from the 3.5-month supply observed in November of the previous year, signaling a fluctuation in the equilibrium between supply and demand in the real estate market. Typically, a balanced market is characterized by a 5- to 6-month supply, serving as a benchmark for assessing the dynamics between buyers and sellers in the housing sector.
Overall, the latest data on existing home sales in the U.S. for November paints a picture of resilience and dynamism in the housing market, showcasing robust sales activity, price appreciation, and evolving supply dynamics.
