US Existing Home Sales plunged 7.7% In November, Down for Tenth Straight Month

November US existing home sales from the National Association of Realtors fell 7.7% month-over-month in November to a seasonally adjusted annual rate of 4.09 million (consensus 4.20 million) versus an unrevised 4.43 million in October. That is the tenth straight month that existing home sales have fallen. Total sales in November were down 35.4% from a year ago. Median price growth has slowed meaningfully as higher mortgage rates and inflation has enforced affordability pressures. Yesterday we heard total building permits declined much more than expected 11.2% month-over-month.

Home Sale

The median existing home price for all housing types increased 3.5% year-over-year to $370,700, representing the 129th consecutive month of year-over-year gains. That is the longest-running streak on record. The median price for single-family homes increased 3.2% year-over-year to $376,700. It was the fifth month in a row, however, that the median sales price faded after reaching a record high of $413,800 in June, the usual seasonal trend of prices trailing off after peaking in the early summer.

“In essence, the residential real estate market was frozen in November, resembling the sales activity seen during the COVID-19 economic lockdowns in 2020,” said NAR Chief Economist Lawrence Yun. “The principal factor was the rapid increase in mortgage rates, which hurt housing affordability and reduced incentives for homeowners to list their homes. Plus, available housing inventory remains near historic lows.”

Properties typically remained on the market for 19 days in September, up from 16 days in August and 17 days in September 2021.

Data for October 2022

Highlights

  • Existing Home Sales Change Nov: 4.09M (est 4.20M; prev 4.43M)
  • Existing Home Sales (M/M): -7.7% (est -5.2%; prev -5.9%)
  • Median Home Price (Y/Y) (USD): 370.7K or +3.5% (prev 379.1K or +6.6%)
  • That is the tenth straight month that existing home sales have fallen.
United States Existing Home Sales
United States Existing Home Sales
  • The median existing home price for all housing types increased 6.6% year-over-year, versus 8.0% in September, to $379,100, representing the 128th consecutive month of year-over-year gains. That is the longest-running streak on record. The median price for single-family homes increased 6.2% year-over-year to $384,900.
  • The inventory of homes for sale at the end of November was down 6.6% month-over-month at 1,140,000 units, but up 2.7% from a year ago.
  • Unsold inventory sits at a 3.3-month supply at the current sales pace, unchanged from October, and versus 2.1 months in the same period a year ago. It is still well below the 6.0-months’ supply typically associated with a more balanced market.
  • First-time buyers accounted for 28% of sales in November, unchanged from October, but up from 26% in the same period a year ago.
  • All-cash sales comprised 26% of transactions in November, unchanged from October, and up from 24% in November 2021.
  • 61% of homes sold in November were on the market for less than a month, versus 64% in October, with properties typically remaining on the market for 24 days, up from 21 days in October and 18 days in November 2021.

Regional Breakdown

  • Existing home sales across regions: Northeast (-7.0%); Midwest (-5.6%); South (-7.1%); and West (-12.5%).
  • Median home prices by region year-over-year: Northeast (+3.5% to $394,700); Midwest (+3.9% to $268,600); South (+4.4% to $340,100); and West (+2.0% to $569,800).

Realtor.com®’s Market Trends Report in in November shows that the largest year-over-year median list price growth occurred in Milwaukee (+38.1%), Memphis (+26.9%) and Miami (+24.8%). Phoenix reported the highest increase in the share of homes that had prices reduced compared to last year (+28.4 percentage points), followed by Austin (+23.8 percentage points) and Denver (+21.0 percentage points).

The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.


Existing home sales account for 90% of US transactions and are calculated on a contract close basis. New home sales account for the remaining 10% and are based on contract signings.

Existing-home sales include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.

 Source: NAHB

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