Washington, DC
CNN
—
Home sales inched slightly higher in November even as prices continued to climb and buyers paid mortgage rates that were at their highest levels of the year, according to a monthly report released Wednesday by the National Association of Realtors.
But sales were still weak, even though closed deals of existing homes — which include single-family homes, townhomes, condominiums and co-ops — beat expectations and rose 0.8% in November to a seasonally adjusted annualized rate of 3.82 million units, finishing a five-month slide.
Compared to a year ago, when sales were at a 4.12 million pace, sales were down 7.3%.
The November figures are reflective of activity in October before the recent decline in mortgage rates, said Lawrence Yun, NAR’s chief economist, in a statement. “A marked turn can be expected as mortgage rates have plunged in recent weeks,” he said.
Elevated prices, together with the average rate for a 30-year fixed rate mortgage nearing 8% in October, have created the least affordable market in several decades.
The median price for existing homes sold last month was $387,600 — a record high for the month of November — which was up 4% from a year ago and marked the fifth consecutive month of year-over-year price increases.
“Home prices keep marching higher,” Yun added. “Only a dramatic rise in supply will dampen price appreciation.”
This is a developing story and will be updated.
