ARLINGTON, Va.—Existing home sales increased 1.9% in November. While this is a 7% sales decline from a year ago, NAFCU Research Assistant Yun Cohen said it is
still a seller's market and will likely remain that way through 2019.
Sales improved in three of the four regions in November, according to data released by the National Association of Realtors. Sales in the Northeast increased 7.2%, followed by the Midwest (+5.5%) and the South (+2.3%). Sales in the West dropped 6.3% during the month.
Based on current sales, there were 3.9 months of supply at the end of November, down from 4.3 months in October. Analysts consider six months of supply to be roughly balanced between supply and demand. Inventory decreased 5.9% in November but was up 4.2% from a year ago, Cohen said.
"Borrowing costs are still expected to trend higher in the upcoming months," Cohen said in a NAFCU Macro Data Flash report. "In addition, price appreciation for single-family homes continues to outpace wage growth, which further adds to affordability strains. An uptick in unsold inventory is starting to put downward pressure on the pace of price appreciation in some markets."
The median existing home price increased from $255,100 in October to $257,700 in November (not seasonally adjusted) – a 4.2% increase from a year ago, Cohen said.