ARLINGTON, Va.—Existing home sales rose 1.9% in November to a seasonally-adjusted annualized rate of 6.46 million units. This represents a 2% decrease in sales versus a year ago.
"The National Association of Realtors attributed some of the recent strength to buyers looking to lock in rates ahead of potential increases next year," said Curt Long, NAFCU chief economist and vice president of research. "However, supply remains the binding constraint. Inventory levels are down 13% from a year ago and account for just 2.1 months of supply based on current sales levels."
Sales rose in three regions this month. The South saw the largest rise, gaining 2.9% on the month, followed by the West (+2.3%), and the Midwest (+0.7%). Sales in the Northeast were flat month over month.
The median existing home price increased by 0.3% in November to $353,900 (not seasonally adjusted) – representing a 13.9% increase from a year ago.
Based on current sales, there were 2.1 months of supply at the end of November, which is down from 2.3 months in October. Analysts consider six months of inventory a rough balance between supply and demand.
"The combination of the Omicron variant and higher mortgage rates may sap some of the strength from the housing market, but the effects will be modest and sales should continue to climb in the first half of 2022,” concluded Long.