November’s Rise in Home Sales Breaks Decline

After months of decline, the U.S. housing market is showing signs of resilience. According to the National Association of Realtors (NAR), there was a slight uptick in existing home sales from November 20-23. This comes after a sustained decline over the previous five months, giving real estate agents and potential homeowners alike a cautiously optimistic outlook.

The NAR’s summary of existing-home sales data showed that housing market activity increased 0.8% in November from October 2023. The seasonally adjusted annual rate for existing-home sales reached 3.80 million. Despite this increase, on a year-over-year basis, existing-home sales weakened by 7.3% from November 2022.

Focusing on the price landscape, the national median existing home price for all housing types was $387,600 in November, up 4.0 percent from a year ago. This increase was not isolated to a single region; all four regions of the United States experienced price growth, with the West leading the way with a 5.3 percent increase, followed by the Midwest at 4.9 percent, the Northeast at 4.8 percent, and the South at 3.4 percent.

The inventory of unsold listings at the end of November 2023 painted a challenging picture for buyers, falling 1.7 percent from the previous month to 1.13 million homes for sale. Compared to the same period in 2022, however, inventory was up 0.9 percent. At the current sales pace, it would take approximately 2.8 months to deplete this inventory, well below the desired pace of 6 months, underscoring the ongoing inventory challenges.

Regional sales variations were pronounced. All regions reported year-over-year sales declines, with the Northeast experiencing the largest decline. However, the South and Midwest actually experienced sales growth from October to November 2023, highlighting the uneven recovery across markets.

November’s slight increase in existing home sales after an extended period of decline offers a glimmer of hope for the U.S. housing market. While challenges such as rising prices and low inventory remain, the recent stabilization in sales activity may signal the beginning of a more balanced market heading into 2024. Both buyers and sellers are advised to stay informed and agile, as the market’s performance in the coming months will be critical in shaping real estate strategies for the year ahead.