Existing Home Sales Up Month-Over-Month but Decline Year-Over-Year in November

On Wednesday (12-22-21), The National Association of Realtors® (NAR) reported that total existing home sales (completed transactions for single-family homes, townhomes, condominiums, and co-ops) increased 1.9% from October to a seasonally adjusted rate of 6.46 million homes in November. This marks the third consecutive month of growth. Three out of the four major reporting regions in the U.S. experienced month-over-month growth, while the fourth zone held steady. Year-over-year, however, sales are down -2.0% (6.59 million in November 2020).

Total housing inventory at the end of November amounted to 1.11 million units, down -9.8% from October and down -13.3% from one year ago (1.28 million). Unsold inventory sits at a 2.1-month supply at the current sales pace, a decline from both the prior month and from one year ago.

The median existing home price for all housing types in November was $353,900, up 13.9% from November 2020 ($310,800). Prices increased in each region, with the highest pace of appreciation in the South region. This marks 117 straight months of year-over-year increases, the longest-running streak on record.

In a statement prepared for the release of November’s existing homes sales report, Lawrence Yun, NAR’s chief economist said, “Determined buyers were able to land housing before mortgage rates rise further in the coming months. Locking in a constant and firm mortgage payment motivated many consumers who grew weary of escalating rents over the last year. Mortgage rates are projected to jump in 2022, however, I don’t expect the imminent increase to be overly dramatic.”

Yun has forecasted that the 30-year fixed mortgage rate to average at 3.7% by year-end of 2022.