ARLINGTON, Va.—Existing-home sales fell 1.7% in November to a seasonally adjusted annual rate of 5.35 million units, with sales decreasing in the South and West regions.
NAFCU Chief Economist and Vice President of Research Curt Long said the figures are on pace to end the year even with 2018.
"Mortgage rates remain relatively low, driving some demand. Months of supply has continued to tick down, with the shortage particularly critical at lower price points," said Long.
The median existing home price increased, up from $270,900 in October to $271,300 in November and representing a 5.4% increase over a year ago.
Based on current sales, there were 3.7 months of supply at the end of November, down 0.2 months from October. Analysts consider six months of supply to be roughly balanced between supply and demand.
Construction Picks Up
"Construction activity picked up in the second half of the year, which should help alleviate some of the pressure." Long added. "NAFCU expects further growth in the housing market in 2020, consistent with improvements over the second half of the year."
Sales in three regions were up versus a year ago: sales in the West grew 4.8%, in the South 3.7%, and in the Midwest 1.7%, Long said.