Existing-home sales expanded 0.8% in November, ending five-month slide

WASHINGTON — Existing-home sales grew in November, breaking a streak of five consecutive monthly declines, according to the National Association of Realtors. Among the four major U.S. regions, sales climbed in the Midwest and South but receded in the Northeast and West. All four regions experienced year-over-year sales decreases.

Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — elevated 0.8 percent from October to a seasonally adjusted annual rate of 3.82 million in November. Year over year, sales fell 7.3 percent, down from 4.12 million in November 2022.

“The latest weakness in existing home sales still reflects the buyer bidding process in most of October, when mortgage rates were at a two-decade high before the actual closings in November,” said Lawrence Yun, NAR chief economist. “A marked turn can be expected, as mortgage rates have plunged in recent weeks.”

According to Freddie Mac, the 30-year fixedrate mortgage averaged 6.95 percent as of Dec. 14, falling below 7 percent for the first time since Aug. 10. That’s down from 7.03 percent the previous week but up from 6.31 percent one year ago.

Total housing inventory registered at the end of November was 1.13 million units, down 1.7 percent from October but up 0.9 percent from one year ago (1.12 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, down from 3.6 months in October but up from 3.3 months in November 2022.

The median existing-home price for all housing types in November was $387,600, an increase of 4.0 percent from November 2022 ($372,700). All four U.S. regions posted price increases.

“Home prices keep marching higher,” Yun added. “Only a dramatic rise in supply will dampen price appreciation.”

REALTORS CONFIDENCE INDEX

According to the monthly REALTORS Confidence Index, properties typically remained on the market for 25 days in November, up from 23 days in October and 24 days in November 2022. Sixty-two percent of homes sold in November were on the market for less than a month.

First-time buyers were responsible for 31 percent of sales in November, up from 28 percent in October 2023 and November 2022. NAR’s 2023 Profile of Home Buyers and Sellers — released in November — found that the annual share of first-time buyers was 32 percent.

All-cash sales accounted for 27 percent of transactions in November, down from 29 percent in October but up from 26 percent in November 2022.

Individual investors or second-home buyers, who make up many cash sales, purchased 18 percent of homes in November, up from 15 percent in October and 14 percent a year ago.

Distressed sales — foreclosures and short sales — represented 1 percent of sales in November, virtually unchanged from last month and the previous year.

SINGLE-FAMILY AND CONDO/CO-OP SALES

Single-family home sales increased to a seasonally adjusted annual rate of 3.41 million in November, up 0.9 percent from 3.38 million in October but down 7.3 percent from the prior year. The median existing single-family home price was $392,100 in November, up 3.5 percent from November 2022.

Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 410,000 units in November, identical to October and down 6.8 percent from one year ago. The median existing condo price was $350,100 in November, up 8.6 percent from the previous year ($322,400).

REGIONAL BREAKDOWN

Existing-home sales in the Northeast slipped 2.1 percent from October to an annual rate of 470,000 in November, down 13.0 percent from November 2022. The median price in the Northeast was $428,600, up 4.8 percent from the prior year.

In the Midwest, existing-home sales rose 1.1 percent from the previous month to an annual rate of 940,000 in November, down 8.7 percent from a year ago. The median price in the Midwest was $280,800, up 4.9 percent from November 2022.

Existing-home sales in the South improved 4.7 percent from October to an annual rate of 1.77 million in November, a decline of 4.3 percent from the prior year. The median price in the South was $351,500, up 3.4 percent from last year.

In the West, existing-home sales slumped 7.2 percent from a month ago to an annual rate of 640,000 in November, down 8.6 percent from one year before. The median price in the West was $603,200, up 5.3 percent from November 2022.