The number of existing home sales picked up slightly in November, marking an end to a five-month decline, according to a report.
The total number of existing home sales hit 0.8% last month to a seasonally adjusted annual rate of 3.82 million. Sales climbed most in the Midwest and South and marked the end of five consecutive monthly declines, the National Association of Realtors (NAR) reported on Wednesday.
November's sales are still 7.3% lower than existing home sales located in the same month last year. However, it exceeded October's rate of 3.79 million and Bloomberg's forecast of 3.78 million.
Existing-home sales rose by 1.1% in the Midwest and 4.7% in the South. However, it fell 2.1% in the Northeast and 4.7% in the West.
While many factors go into existing home sales, NAR Chief Economist Lawrence Yun said the increase was expected as mortgage rates dipped to 6.83% after previously surpassing 8%.
"The latest weakness in existing home sales still reflects the buyer bidding process in most of October when mortgage rates were at a two-decade high before the actual closings in November," Yun said in the report. "A marked turn can be expected as mortgage rates have plunged in recent weeks."
Did Home Prices Also Increase?
Apart from the number of existing home sales recorded in November, the median sales price for existing houses also rose 4% year over year to $387,000 from $372,700. The increase in median sales price was recorded in all four U.S. regions.
"Home prices keep marching higher," Yun noted. "Only a dramatic rise in supply will dampen price appreciation."
Specifically, the median price rose 3.4% in the South to $351,500; 4.8% in the Northeast to $428,600; 4.9% in the Midwest to $280,800; and 5.3% in the West to $603,200.
Despite an increase in home sales and prices, the inventory of unsold existing homes dropped by 1.7% in November to 1.13 million units. This is equivalent to a 3.5-month supply.
That being said, new listings still rose 1.3% month over month in November, the highest level recorded since October 2022. Active listings also grew 3.9% month over month, which is the biggest increase recorded since July 2022, according to Redfin.
