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November’s Rise in Home Sales Breaks Decline

November's Rise in Home Sales Breaks Decline
After months of decline, the U.S. housing market is showing signs of resilience. According to the National Association of Realtors (NAR), existing home sales increased slightly from November 20 to 23. This comes after a sustained decline over the previous five months, giving real estate agents and potential homeowners alike a cautiously optimistic outlook.
Signs of recovery after long decline
After months of decline, the U.S. housing market is showing signs of resilience. According to the National Association of Realtors (NAR), there was a slight uptick in existing home sales from November 20-23. This comes after a sustained decline over the previous five months, giving real estate agents and potential homeowners alike a cautiously optimistic outlook.
Analyzing the numbers: A closer look at sales and prices
The NAR’s summary of existing-home sales data showed that housing market activity increased 0.8% in November from October 2023. The seasonally adjusted annual rate for existing-home sales reached 3.80 million. Despite this increase, on a year-over-year basis, existing-home sales weakened by 7.3% from November 2022.
Price growth in all regions
Focusing on the price landscape, the national median existing home price for all housing types was $387,600 in November, up 4.0 percent from a year ago. This increase was not isolated to a single region; all four regions of the United States experienced price growth, with the West leading the way with a 5.3 percent increase, followed by the Midwest at 4.9 percent, the Northeast at 4.8 percent, and the South at 3.4 percent.
Inventory and market pace challenges persist
The inventory of unsold listings at the end of November 2023 painted a challenging picture for buyers, falling 1.7 percent from the previous month to 1.13 million homes for sale. Compared to the same period in 2022, however, inventory was up 0.9 percent. At the current sales pace, it would take approximately 2.8 months to deplete this inventory, well below the desired pace of 6 months, underscoring the ongoing inventory challenges.
Regional variations and outlook
Regional sales variations were pronounced. All regions reported year-over-year sales declines, with the Northeast experiencing the largest decline. However, the South and Midwest actually experienced sales growth from October to November 2023, highlighting the uneven recovery across markets.
A glimmer of hope amid market uncertainties
November’s slight increase in existing home sales after an extended period of decline offers a glimmer of hope for the U.S. housing market. While challenges such as rising prices and low inventory remain, the recent stabilization in sales activity may signal the beginning of a more balanced market heading into 2024. Both buyers and sellers are advised to stay informed and agile, as the market’s performance in the coming months will be critical in shaping real estate strategies for the year ahead.
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Angel A. Pacheco, CPA
Pacheco Property Group, LLC
Orlando
I take the time to listen carefully to understand my client’s needs, wants and concerns. I will be ready to take quick action when required and spend more time with those who aren’t quite sure which direction to take. My genuine concern for my client’s best interests and happiness ensures the job is done!
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