Existing-home sales continue to rise year-over-year for the second month as economists say buyers are feeling more positive about their market prospects.
Total existing-home sales improved 4.8% in November, rising from October’s rate of 3.96 million to 4.15 million.
November’s sales data saw a large jump of 6.1% year-over-year, more than double October’s year-over-year increase of 2.9%. This is the strongest year-over-year increase reported since June 2021. These two months are also a staunch reversal of the 14-year low seen back in September’s report.
NAR Chief Economist Lawrence Yun commented that the continuing rises mean that “home sales momentum is building.”
“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%,” he continued. “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.”
Bright MLS Chief Economist Lisa Sturtevant noted that if December’s existing-home sales data is “generally good,” 2024’s overall sales data should be above 2023’s, “though still only slightly.”
“The main constraints in the housing market have been inventory and affordability,” she explained. “In November, the median sold price was up again, increasing by 4.7% compared to a year ago. Home prices are now about 50% higher than they were five years ago.”
November’s total housing inventory came in at 1.33 million units, down 2.9% from October but up 17.7% from one year ago. Unsold inventory sits at a 3.8-month supply at the current sales pace, down from 4.2 months in October, but up from 3.5 months in November 2023.
First-time buyers were responsible for 30% of sales in November, up from 27% in October, but down from 31% in November 2023. This is in contrast to NAR’s recent 2024 Profile of Home Buyers and Sellers, which found that the annual share of first-time buyers was 24%, the lowest ever recorded.
Cash sales accounted for 25% of transactions in November, down from 27% in both October and the previous year. Individual investors or second-homebuyers purchased 13% of homes, down from 17% in October and 18% in November 2023. Distressed sales (foreclosures and short sales) represented 2% of sales, almost unchanged from last month and year.
In addition, the median existing-home price for all housing types in November was $406,100, up 4.7% from one year ago ($387,800).The monthly REALTORS® Confidence Index also found that properties typically remained on the market for 32 days, up from 29 days in October and 25 days in November 2023.
Breaking down the different types of units, single-family home sales rose 5% to a rate of 3.76 million in November, up 7.4% from the previous year, and the median existing price was $410,900, up 4.8% from a year ago. Existing condominium and co-op sales increased 2.6% in November to a rate of 390,000 units, down 4.9% from one year ago, and the median price was $359,800, up 2.8% from the prior year.
Realtor.com® Chief Economist Danielle Hale noted in her commentary on the report that home sales could “falter again in the months ahead as fall’s higher rates are felt,” but added that “mortgage rates have already turned the corner again, dropping back to 6.6% as of mid-December.”
“While Fed policy and inflation trends may lead to upticks in interest rates from time to time, as the reaction to the December Fed meeting and updated Fed projections shows, in the medium run, more mortgage rate declines are expected,” she continued.
Sturtevant added that “it has been a difficult market for would-be homebuyers.”
“Some of the obstacles in the market will ease somewhat in 2025 as listing activity increases and mortgage rates come down slightly,” she concluded. “Pent-up demand that has been building over the past two years will be unleashed, and 2025 sales should outpace 2024. Buyers should still expect to encounter a competitive market in the year ahead.”
Regional data
Regionally, sales in the Northeast in November jumped 8.5% from October to a rate of 510,000, up 6.3% from last year, and the median price was $475,500, up 9.9% from one year earlier.
The Midwest saw sales grow 5.3% to a rate of 1 million, up 5.3% from the previous year, and the median price was $302,000, up 7.3% from last year.
Sales in the South rose 5.6% from October to a rate of 1.87 million, up 3.3% from one year before, and the median price was $361,300, up 2.8% from one year earlier.
In the West, sales were unchanged at a rate of 770,000, up 14.9% from a year ago, and the median price was $628,200, up 4% from last year.
