US November Home Sales Report

Sales of previously occupied homes in the United States rose 0.5% in November from October, reaching a seasonally adjusted annual rate of 4.13 million units, according to the National Association of Realtors. However, sales were down 1% compared to November last year, marking the first year-over-year decline since May. Despite sluggish sales, the national median home price increased 1.2% from a year earlier to $409,200, an all-time high for November. This continues a trend of 29 consecutive months of annual price increases, even as the housing market has been in a slump since 2022 due to rising mortgage rates. Affordability remains a significant challenge, especially for first-time homebuyers, who accounted for only 30% of sales last month, down from a historical norm of 40%. A shortage of homes for sale, particularly in the affordable segment, also contributes to the market's imbalance. Lawrence Pak, chief economist for the National Association of Realtors, is more optimistic than other economists, forecasting a 14% jump in existing United States home sales next year.