Existing-home sales see largest year-over-year gain since June 2021
Despite the weather cooling in November, there were still many hot markets for home sales. Existing-home sales rose 4.8% from October to November, with all four regions logging gains or maintaining their pace, according to the National Association of Realtors® (NAR). Closings also increased 6.1% from November 2023. Sales came in at a seasonally adjusted annual rate of 4.15 million.
“Home sales momentum is building,” said Lawrence Yun, chief economist at NAR. “More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%.”
Contributing to this sales activity were mortgage rates, which were inching down throughout November. Potential homebuyers used this as an opportunity to take advantage as soon as rates entered their comfort zone. Find out how to be prepared for a mortgage rate drop.
Prices up, inventory down
While the number of homes sold in November was encouraging, there are a few dark spots in this report. Inventory, the number of unsold homes on the market, was down 2.9% from October. There were 1.33 million unsold homes in November, down from 1.37 million last month, but up 17.7% from November 2023. This is the first month in 2024 that inventory was down and currently sits at a 3.8-month supply at the current sales pace. This is still up from 3.5 months last year.
In addition, home prices were up 4.7% from last year, staying above $400,000 with a median existing-home price of $406,100.
“Existing homeowners are capitalizing on the collective $15 trillion rise in housing equity over the past four years to look for homes better suited to their changing life circumstances,” Yun noted.
Month | Median existing-home price | Month-over-month | Year-over-year |
$391,800 | Down 0.6% | Up 3.4% | |
$387,600 | Down 1.1% | Up 4.0% | |
$382,600 | Down 1.3% | Up 4.4% | |
$379,100 | Down 0.9% | Up 5.1% | |
$384,500 | Up 1.4% | Up 5.7% | |
$393,500 | Up 2.3% | Up 4.8% | |
$407,600 | Up 3.6% | Up 5.7% | |
$419,300 | Up 2.9% | Up 5.8% | |
$426,900 | Up 1.8% | Up 4.1% | |
$422,600 | Down 1.0% | Up 4.3% | |
$416,700 | Down 1.4% | Up 3.1% | |
$404,500 | Down 2.9% | Up 3.0% | |
$407,200 | Up 0.7% | Up 4.0% | |
November | $406,100 | Down 0.3% | Up 4.7% |
The who and where of home sales in November
Three out of the four regions saw more homes sold in November than in October, and all four saw more homes sold than from the year prior.
- Northeast: up 8.5%, an annual rate of 510,000, up 6.3% from November 2023
- Midwest: up 5.3%, an annual rate of 1,000,000, up 5.3% from November 2023
- South: up 5.6%, an annual rate of 1,870,000, up 3.3% from November 2023
- West: unchanged at an annual rate of 770,000, up 14.9% from November 2023
First-time homebuyers were responsible for 30% of sales in November, up from 27% in October but down from 31% in November 2023. 25% of transactions were all-cash sales in November, down from 27% in both October and November 2023. Individual investors or second-home buyers purchased 13% of homes in October, down from 17% in October.
Today’s news highlights that many homebuyers see fall as a great time to purchase a home. It also shows that some markets have remained competitive in recent months, even as the weather cools down. That’s why partnering with an experienced loan officer who knows your local market is so important.
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