Existing Home Sales for November Fall under Expectations
The volume of existing homes sold in November slumped 4.3% compared with October, recording a third month of declines, to a seasonally adjusted annual rate of 4.9 million. The reasons are higher mortgage rates and low inventory, according to the November’s sales pace, the slowest since last December, was below the estimate from economists polled by MarketWatch, who had expected a pace of 5 million, with sales pulling back after buyers rushed over the summer to lock in low mortgage rates.
The sales pace in November was down 1.2% from the year-earlier period, the first annual drop in more than two years. The median sales price of used homes hit $196,300 in November, up 9.4% from the year-earlier period, supported by low inventory. November’s inventory was 2.09 million existing homes for sale, a 5.1-month supply at the current sales pace.