ARLINGTON, Va.—Existing home sales rose 0.8% in November to a seasonally-adjusted annual rate of 3.82 million units, representing a 7.3% decrease in sales versus a year ago.
“Existing home sales ended a five-month streak of declines by inching up in November and appear to have leveled out,” said NAFCU Research Analyst John Hay. “Mortgage rates made headlines as they fell over 50 basis points over the month of November, and rates have continued to trend down in December. That should lead to more sales, although it remains unclear whether buyers may hold out with the expectation that rates will continue to improve in 2024.”
The new data show that in November sales rose the most in the South (4.7%), followed by the Midwest (1.1%). Sales fell in the West (-7.2%) and the Northeast (-2.1%).
Three-Plus Months of Supply
Based on current sales, there were nearly 3.5 months of supply at the end of November. Analysts consider 6 months of inventory a rough balance between supply and demand, Hay said.
The median existing home price, not seasonally-adjusted, fell 1% in September to $387,600, a 4% increase versus a year ago.
“Prices are climbing steadily after adjusting for seasonality. That should continue to be the case regardless of rate moves, as rates impact both housing supply and demand. NAFCU expects home sales to improve in 2024 due to lower rates,” concluded Hay.
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