Existing home sales rise for third consecutive month
Falling mortgage rates revive the market, but supply shortages could create new stress.
A home for sale in Florida
The National Association of Realtors (NAR) reported that sales of pre-owned homes rose again in November, boosted by lower mortgage rates.
Home sales rose 0.5% last month. Lawrence Yun, NAR chief economist, explained that the increase was due to "lower mortgage rates this autumn."
"However, inventory growth is beginning to stall," Yun also warned. "With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months."
He also warned that while wage growth outpaces rising home prices, future affordability could suffer if housing supply does not keep pace with demand.
"As has been the case throughout the year, single-family home sales outperformed condominium sales in November," Yun also noted. "The typical price of a sold condo was 13.5% lower than the typical price of a single-family home. However, the purchase price does not include the condominium association fees, which are rising and making these purchases more expensive."
Other highlights of November housing collected in the report are that:
- Total housing inventory decreased 5.9% from the previous month.
- Compared to a year earlier, existing home sales decreased 1.0%.
- Average sales price increased 1.2% from a year earlier, standing at $409,200, but this level was lower than those seen in recent months.
- The popular 30-year fixed-rate mortgage stood at about 6.2% in November, a decrease from levels seen in previous months.
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Joaquín Núñez
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