For the first time after five months of prosperous gains, existing home sales dropped in November. At a seasonally adjusted annualized rate of 6.69 million units, existing home sales dropped 2.5% month to month. But annually, home sales remain 25.8% higher. With home prices up 14.6% annually and housing inventory at a 38-year low, affordability has become an even greater barrier for buyers, says CNBC. The National Association of Realtors’ chief economist also points out that job openings have fallen back, impacting consumer confidence. And he also adds there is no reason to be alarmed nor worried about this decline.
There were just 1.28 million homes available for sale at the end of November. That is down 22% from a year earlier and represents a 2.3-month supply at the current sales pace. That’s the lowest inventory count since the Realtors began tracking this metric in 1982. The number of new listings is actually up about 10% from November 2019, but demand is sucking up that supply quickly.
Homes sold at the fastest pace on record, spending an average of just 21 days on the market. Last year, homes were selling in 38 days, which was also considered fast.
