WASHINGTON, Dec 19 (Reuters) – U.S. existing home sales rose marginally in November as economic uncertainty and still-elevated mortgage rates curbed demand.
Home sales increased 0.5% last month to a seasonally adjusted annual rate of 4.13 million units, the National Association of Realtors said on Friday. It also noted that fewer sellers were putting their houses on the market.
Economists polled by Reuters had forecast home resales would rise to a rate of 4.15 million units. Home sales declined 1.0% on a year-over-year basis.
“Inventory growth is beginning to stall,” said Lawrence Yun, the NAR’s chief economist. “With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months.”
Though the rate on the popular 30-year fixed-rate mortgage has declined considerably from lofty levels at the start of the year, it has remained stuck above 6%, data from mortgage finance agency Freddie Mac showed.
The improvement in mortgage rates is also being partially offset by a sluggish labor market, with the unemployment rate rising to a more than four-year high of 4.6% in November and annual wage growth the slowest since May 2021.
The inventory of existing homes increased 7.5% from a year ago to 1.43 million units in November after posting double-digit gains in the prior months. At November’s sales pace, it would take 4.2 months to exhaust the current inventory of existing homes, up from 3.8 months a year ago.
The median existing home price last month increased 1.2% from a year ago to $409,200. The median days on the market for listed properties increased to 36 from 32 a year ago.
First-time buyers accounted for 30% of sales in November, unchanged from a year ago. Economists and realtors say a 40% share in this category is needed for a robust housing market.
All-cash sales constituted 27% of transactions, up from 25% a year ago. Distressed sales, including foreclosures, made up 2% of transactions, holding steady from a year ago.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
