Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Existing home sales in the U.S. surged 4.8% in November compared to October, reaching a seasonally adjusted annual rate of 4.15 million units, the highest since March, according to the National Association of Realtors (NAR). Sales increased 6.1% year-over-year, the largest gain since June 2021. The national median sales price rose 4.7% to USD 406,100, marking the 17th consecutive month of price increases. The rise was driven by a 17.7% year-over-year increase in housing inventory, despite elevated mortgage rates averaging 6.6%. However, overall sales for 2023 may still fall short, potentially marking the lowest annual total since 1995, as the housing market continues grappling with affordability challenges and supply constraints.
Sales of previously owned homes in the United States saw a notable increase in November, reaching their highest pace since March. This uptick is largely attributed to a wider selection of properties available to home shoppers, despite rising mortgage rates. According to the National Association of Realtors (NAR), existing home sales rose by 4.8% in November compared to October, resulting in a seasonally adjusted annual rate of 4.15 million units. Advertisement
Moreover, sales accelerated by 6.1% compared to November of the previous year, marking the largest year-over-year gain since June 2021. These figures surpassed economists' expectations, who had forecasted a pace of 4.1 million, as reported by FactSet. Home prices continued to increase for the 17th consecutive month, with the national median sales price climbing by 4.7% year-over-year to USD 406,100. However, despite the growth in November and October, home sales remain below last year?s levels, which had dropped to the lowest point in nearly three decades.
Lawrence Yun, NAR?s chief economist, indicated that the total number of home sales in 2023 is unlikely to match last year's figures, potentially marking the lowest total since 1995. The U.S. housing market has been in a prolonged slump since 2022, primarily due to rising mortgage rates following the record lows during the pandemic. A persistent shortage of homes for sale has also kept prices elevated, with prices reported to have increased by 50% nationally since 2019.
Although mortgage rates slightly declined this year after peaking at nearly 8% in October 2023, the decrease has not significantly impacted many potential homebuyers. The average mortgage rate fell to just above 6% in September, following the Federal Reserve's first interest rate cut in over four years. However, rates have since generally increased, with Freddie Mac reporting an average rate of 6.6% last week.
Contracts signed in September and October, when mortgage rates were more favorable, likely contributed to the home sales that closed in November. Looking ahead, the outlook for mortgage rates in the coming year remains uncertain. While many economists predict a slight reduction in the average 30-year mortgage rate, it is expected to stay above 6%. Mortgage rates are influenced by various factors, including changes in the yield of U.S. 10-year Treasury bonds, which surged after the Federal Reserve indicated fewer rate cuts than previously expected, potentially impacting mortgage rates indirectly.
In November, there was also an increase in the availability of homes, benefiting buyers who could afford to purchase. Data indicated that 1.33 million unsold homes were available at the end of the month, reflecting a 17.7% increase from the previous year, though slightly down from October. This represented a 3.8-month supply at the current sales pace, which is considered below the market's balance point. Yun noted that the increase in inventory contributed to the rise in sales. Additionally, buyers paying all cash accounted for 25% of sales, a slight decline from 27% the previous year.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
