Existing-Home Sales Down 2.5 Percent In November 2020

The National Association of Realtors reported that total existing-home sales decreased 2.5% from October 2020 to November 2020, following a five-month streak of month-over-month gains.

The NAR notes that sales in total are up 25.8% year-over-year from 5.32 million in November 2019 to 6.69 million in November 2020.

"Home sales in November took a marginal step back, but sales for all of 2020 are already on pace to surpass last year's levels," said Lawrence Yun, NAR's chief economist. "Given the COVID-19 pandemic, it's amazing that the housing sector is outperforming expectations."

Yun added that the halt in job recoveries, an elevation of coronavirus cases and stricter lockdowns have weakened consumer confidence.

"Circumstances are far from being back to the pre-pandemic normal," he said. "However, the latest stimulus package and with the vaccine distribution underway, and a very strong demand for homeownership still prevalent, robust growth is forthcoming for 2021."

According to the report, the median existing-home price for all housing types in November was $310,800, up 14.6% from November 2019's median existing-home price of $271,300.

"The positive momentum that home sellers are seeing will carry on well into the new year," predicted Yun who cited low mortgage rates and remote-work flexibilities.

"Housing affordability, which had greatly benefitted from falling mortgage rates, are now being challenged due to record-high home prices," added Yun. "That could place strain on some potential consumers, particularly first-time buyers."

Click here to read more from the NAR report.