Existing home sales rose the fastest last month since January, according to the latest data from the National Association of Realtors.
The NAR announced Wednesday that previously occupied home sales rose 1.9% month-over-month to a seasonally adjusted rate of 6.46 million units in November. That’s the biggest increase in ten months, but sales were down 2% compared to November 2020.
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“Existing home sales climbed to a robust 6.46 million in November for the third straight month, another indication that the property market is ending the year on solid footing,” said Joel Kan, associate vice president of Economic and Industry Forecasting for the Mortgage Bankers Association, in a statement in response to NAR’s report on existing home sales.
“Annualized sales speed was its strongest since January 2021, but it was also accompanied by a 10% decrease in sales inventory,” Kan continued, noting that “the 1.1 million units sold are less than half the historical average . “
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The national median home price also rose to $ 353,900 in November, up 13.9% from the same month last year as low inventory levels continue to drive demand for homes in the market.
“Buyers kept buying available homes because the offers for sale only lasted 18 days,” Kan said. “This fast-paced competition continues to put upward pressure on sales prices and overall home price growth, and has an impact on observation decks.” They continued to struggle to reach the market and accounted for only 26% of all sales last month – up from 29% in October and 32% last November. “
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But Kan sees hope on the inventory side.
“The recent US Census Bureau release on housing starts indicated an increase in new construction and permitting activity in November which will hopefully help alleviate the housing shortages facing the market,” he said.
The Associated Press contributed to this report.