Home sales fell for the 10th consecutive month in November, according to the National Association of Realtors. All four major regions of the United States recorded month-over-month and year-over-year declines.

Home sales — completed deals that include single-family homes, townhouses, condominiums and co-ops — fell 7.7% from October to a seasonally adjusted annual rate of 4.09 million in November. Year-over-year sales were down 35.4% (from 6.33 million in November 2021).

“In essence, the residential real estate market was frozen in November, resembling the sales activity seen during the Covid-19 economic shutdowns in 2020,” said Lawrence Yun, chief economist at NAR. “The main driver has been rapidly rising mortgage rates, which have hurt housing affordability and reduced incentives for homeowners to list their homes. Additionally, the inventory of available homes remains near historic lows.

Total housing stock recorded at the end of November was 1.14 million units, down 6.6% from October, but up 2.7% from a year ago (1.11 million). Unsold inventory sits at a 3.3 month supply at the current selling rate, which was the same as October, but up from 2.1 months in November 2021.

“The slight drop in mortgage rates this week came during the quietest time of the year,” said Holden Lewis, real estate and mortgage expert at NerdWallet. “The lack of demand for home loans is helping to keep rates from rising. But mortgage rates are much higher than they were a year ago, and the result is a remarkable drop in the pace of existing home sales, which was 7.7% weaker in November than a year before. Along the same lines, median resale prices for existing homes rose just 3.5% year-over-year in November, a sharp drop from the start of the year, when the annual appreciation in house prices was in the double digits.

The median existing home price for all housing types in November was $370,700, up 3.5% from November 2021 ($358,200), as prices rose in all regions. That’s 129 straight months of year-over-year increases, the longest streak on record. Properties generally remained on the market for 24 days in November, compared to 21 days in October and 18 days in November 2021. Sixty-one percent of homes sold in November 2022 were on the market for less than a month.

“Outside of May 2020, this month saw the lowest level of existing home sales in 12 years,” said Zillow senior economist Nicole Bachaud. “Sales of existing homes have been hit on both sides, with buyers and sellers at a standstill in the market, but sales could pick up in the coming months in response to lower mortgage rates. We have seen that mortgage applications have increased in recent weeks, now that there is more room in the budgets of potential buyers in the context of lower rates and very slightly lower home values, which could help to stimulate demand enough to keep sales from falling further – for now. But available inventory will remain a limiting factor in this market, and with existing home inventory down for the fourth consecutive month, we can expect existing home sales to remain well below the levels of the last year and keep prices under pressure.

First-time buyers were responsible for 28% of sales in November, unchanged from October, but up from 26% in November 2021. NAR’s 2022 Profile of Home Buyers and Sellers, released on last month revealed that time buyers were down 26%, the lowest since NAR began tracking the data.

Cash sales accounted for 26% of transactions in November – the same as October and up from 24% in November 2021. Individual investors or second home buyers, who make up many cash sales, bought 14% homes in November, down from 16% in October and 15% in November 2021. Distressed sales – foreclosures and short sales – accounted for 2% of sales in November, virtually unchanged from last month and there one year old.

“Existing home sales sank into a deep freeze, propelled primarily by high mortgage rates but not helped by seasonal factors,” said Robert Frick, business economist at Navy Federal Credit Union. “High rates make it expensive for potential new homeowners to buy, but they also tend to lock in potential sellers on the spot given that millions of people hold mortgages below 4% and even below 3%. Combined with Tuesday’s report of weak single-family home construction, we will need a thaw in mortgage rates before existing home sales heat up in 2023.”

According to Freddie Mac, the 30-year fixed rate mortgage averaged 6.31% as of December 15. That’s down from 6.33% last week, but up from 3.12% a year ago. Yun said, “The market may be melting as mortgage rates have fallen for five consecutive weeks. The average monthly mortgage payment is now nearly $200 lower than it was several weeks ago when interest rates peaked this year.

Realtor.com’s Housing Market Trends Report for November shows the strongest year-over-year median price growth occurred in Milwaukee (+38.1%), Memphis (+26 .9%) and Miami (+24.8%). Phoenix saw the largest increase in the share of homes with price cuts from a year ago (+28.4 percentage points), followed by Austin (+23.8 percentage points) and Denver (+21.0 percentage points).

Single-family and condo/co-op sales

Sales of single-family homes fell at a seasonally adjusted annual rate of 3.65 million in November, down 7.6% from 3.95 million in October and 35.2% from a year ago. one year old. The median price of existing single-family homes was $376,700 in November, up 3.2% from November 2021.

Sales of existing condos and co-ops were recorded at a seasonally adjusted annual rate of 440,000 units in November, down 8.3% from October and 37.1% from a year earlier. The median price of existing condos was $321,600 in November, an annual increase of 5.8%.

“For most of this year, potential home buyers have faced the twin challenges of high mortgage rates and limited housing inventory,” said NAR Chairman Kenny Parcell, Spanish Fork Realtor. , Utah, and owner broker of Equity Real Estate Utah. “Consumers can count on real estate agents to provide insightful advice on changing market conditions and trusted expertise through every step of the home buying process.”

Regional distribution

Sales of existing homes in the Northeast fell 7% from October to an annual rate of 530,000 in November, down 28.4% from November 2021. The median price in the Northeast East was $394,700, an increase of 3.5% over the previous year.

Existing home sales in the Midwest fell 5.6% from the previous month to an annual rate of 1.02 million in November, down 30.6% from a year ago. The median price in the Midwest was $268,600, up 3.9% from November 2021.

In the South, existing home sales fell 7.1% in November from October to an annual rate of 1.84 million, down 35.0% from a year earlier. The median price in the South was $340,100, an increase of 4.4% over the same period last year.

Existing home sales in the West fell 12.5% ​​from October to an annual rate of 700,000 in November, down 45.7% from a year ago. The median price in the West was $569,800, a 2.0% increase from November 2021.

Yun said, “The western region saw the biggest decline in home sales and the smallest increase in home prices compared to other regions in the country.”

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