The National Association of Realtors (NAR) reported another significant rise in U.S. existing home sales for November, following a similar surge in October.
Sales jumped by 4.8% to an annual rate of 4.15 million, surpassing economists’ expectations of a 2.8% increase. This marks the highest sales level since March, reflecting growing momentum in the housing market.
Key Drivers of Growth
NAR Chief Economist Lawrence Yun attributed the increase to several factors:
- Job Growth: The expanding economy is drawing more buyers into the market.
- Rising Inventory: Housing inventory has grown 17.7% compared to last year, despite a slight month-over-month decline to 1.33 million units.
- Mortgage Rate Adjustment: Buyers are adapting to mortgage rates stabilizing between 6% and 7%.
The unsold inventory now represents 3.8 months of supply, a slight improvement over the 3.5 months recorded in November 2023 but lower than October’s 4.2 months.
Housing Prices and Equity Trends
The median existing home price reached $406,100 in November, a 4.7% increase from $387,800 a year ago. Yun highlighted that homeowners are leveraging a $15 trillion rise in housing equity over the past four years to transition into homes better suited to their evolving needs.
What’s Next?
Looking ahead, the Commerce Department will release data on new home sales for November, which could further illuminate trends in the housing market.
Conclusion
The U.S. housing market is showing strong resilience, driven by economic growth and consumer adaptability to changing mortgage rates. While rising inventory and prices reflect robust demand, it remains to be seen how these trends will impact affordability and accessibility in the coming months.
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