The National Association of Realtors (NAR) released data this Thursday indicating a substantial rise in U.S. existing home sales for November, following a considerable rebound in October. The report reveals that existing home sales surged by 4.8%, reaching an annual rate of 4.15 million units. This follows a 3.4% increase in October, which brought sales to an annual rate of 3.96 million. Analysts had forecasted a 2.8% rise, expecting an annual rate of 4.07 million.
This unexpected escalation propelled existing home sales to their highest level since March, when the rate was 4.22 million. NAR Chief Economist Lawrence Yun commented, "The momentum in home sales is gaining strength. The influx of buyers can be attributed to ongoing job growth, increased housing inventory compared to last year, and an adjustment to the prevailing mortgage rates, which now range between 6% and 7%."
According to the report, housing inventory at November's close was 1.33 million units, a 2.9% decline from October's 1.37 million units, yet a 17.7% increase compared to the 1.13 million units from the previous year. The unsold inventory now accounts for a 3.8-month supply at the current sales rate, slightly less than the 4.2-month supply reported in October, but more than the 3.5-month supply recorded in November 2023.
Further details from NAR indicate that the median existing home price in November was $406,100, marking a 4.7% rise from $387,800 a year earlier. Yun added that "existing homeowners are leveraging the collective $15 trillion increase in housing equity over the past four years to find homes that better match their evolving life needs."
Looking ahead, the Commerce Department plans to release a separate report on new home sales for November this coming Tuesday.
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