Home sales rebounded strongly in November, marking the second consecutive monthly gain and the highest annual increase since June 2021. Buyers are returning to the market as they adjust to higher mortgage rates and inventory grows.
Sales of existing homes posted their highest gain in more than three years for the second month in a row as buyers are coming back to the market as they adjust to a new normal of elevated rates. The National Association of Realtors said Thursday that home sales grew 4.8% in November compared to last month. Compared to a year ago, sales grew 6.1%, the highest jump since June of 2021.the existing home market posted a gain in a year that has been tracking to be the slowest since 1995.
“Home sales momentum is building,” NAR Chief Economist Lawrence Yun said. “More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%.”in 2025 is murky with expectations that the Fed will leave its rates higher for longer than originally anticipated with nagging inflation and the uncertainties of President-elect Donald Trump’s tariffs, tax cuts and plans for a mass deportation campaign that all have concerned economists over their effects on prices. Mortgage rates have been highly influential on the market since they climbed above 7% as bond yields grew, putting more buyers on the sidelines while they wait for rates to move back down. Buying activity has surged when rates drop toward 6%, including last month when existing home sales posted their first gain in more than three years. Getting a lower rate on a mortgage is particularly important for buyers in a market that is strapped for affordability. List prices have continued a steady march upward since the pandemic housing boom and have showed few signs of budging with a limited supply of homes on the market. The median existing home price in November was $406,100, a 4.7% increase compared to a year ago. There are few indications that prices will sink, though there is some hope that they will moderate toward historical norms of around 2% with improved market condition
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