NAR: Existing Home Sales Dropped in November

Total existing home sales in November totaled a seasonally-adjusted annual rate of 5.35 million in November, according to new data from the National Association of Realtors (NAR). This is down 1.7 percent from October but up 2.7 percent from November 2018.

 

The median existing-home price for all housing types last month was $271,300, up 5.4 percent from the $257,400 from one year ago. November’s price increase marks 93 straight months of year-over-year gains. Total housing inventory at the end of November totaled 1.64 million units, down by approximately 7.3 percent from October and down by 5.7 percent from one year ago. Unsold inventory sits at a 3.7-month supply at the current sales pace, and November was the fifth consecutive month of a shrinking inventory.

 

NAR also noted that last month saw a 16 percent year-over-year decline in homes priced below $100,000 and a 4 percent year-over-year drop reduction for homes priced from $100,000 to below $250,000.

 

“Sales will be choppy when inventory levels are low, but the economy is otherwise performing very well with more than two million job gains in the past year,” said NAR Chief Economist Lawrence Yun.

 

Mortgage Bankers Association (MBA) SVP and Chief Economist Mike Fratantoni said: "Existing-home sales dipped in November, as housing supply declined even further to 3.7 months at the current sales pace. MBA’s mortgage applications data show that demand is still strong, given the healthy job market and low mortgage rates. The lack of supply continues to be the constraint slowing prospective buyers. The news this week that builders are picking up the pace of new construction is quite positive. More inventory is needed to meet the underlying demand for buying a home.”

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