Home sales surge more than expected in November | Wilnesh News

According to the National Association of Realtors, sales of previously owned homes increased 4.8% in November from October. After seasonally adjustment, annualized sales volume was 4.15 million units.

Sales increased 6.1% compared with November 2023.

This count is based on volume, so contracts were most likely signed in September and October. Mortgage rates fell to an 18-month low in September but then surged in October.

“Home sales momentum is building,” said NAR Chief Economist Lawrence Yun. “As the economy continues to add jobs, housing inventory grows year over year and consumers get used to mortgage rates in the 6 to 7 percent range, %, with more buyers entering the market.”

The supply of homes for sale at the end of October was 1.33 million units, an increase of 17.7% from November last year. At current sales rates, this equates to a 3.8-month supply. A 6-month supply is considered a balance between buyers and sellers.

Tight supply continues to put pressure on prices. The median price in November was $406,100, up 4.7% from the same period last year. The year-over-year comparison is up again. Prices increased 4% year-on-year in October.

Price growth was strongest in the Northeast and Midwest, at 9.9% and 7.3% respectively. About 18% of the homes sold for more than their list price.

First-time homebuyers made some headway, accounting for 30% of sales in November, up from 27% in October but slightly lower than a year ago. Cash still dominates, accounting for 25% of sales. However, investors withdrew only 13% of sales, down from 18% in November.

“Does this indicate that investors or more numbers-focused people think housing prices have peaked? Or is it another reason why rents are no longer rising?” Yun asked.

The biggest sales growth continues to be at the high end of the market. Sales of homes priced over $1 million jumped 24.5% from November, while sales of homes priced under $100,000 fell 24.1%.

Mortgage rates are moving higher again today following the latest Federal Reserve meeting, with the average 30-year fixed rate soaring 21 basis points on Wednesday. The Fed is currently expected to cut interest rates less deeply next year.