Existing home sales jump 4.8% in November, hit highest level since March

Existing home sales reached their highest level since March as buyers adapt to current mortgage rate conditions, according to the National Association of Realtors.

Sales of previously owned homes rose 4.8% in November to a seasonally adjusted annual rate of 4.15 million units, marking the strongest year-over-year increase since June 2021. The November figures showed a 6.1% jump compared to the same period last year, when sales stood at 3.91 million units.

The median existing home price reached $406,100, continuing an upward trajectory for the 17th consecutive month with a 4.7% increase from November 2023. All four major U.S. regions documented price appreciation during this period.

"Home sales momentum is building," said NAR Chief Economist Lawrence Yun. "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%."

Housing inventory tightened, declining 2.9% from October to 1.33 million units at November's end. However, this figure represents a 17.7% increase from the previous year's supply of 1.13 million units. At the current sales pace, unsold inventory represents a 3.8-month supply, down from October's 4.2 months but up from 3.5 months in November 2023.

Yun noted that homeowners are leveraging equity gains, stating, "Existing homeowners are capitalizing on the collective $15 trillion rise in housing equity over the past four years to look for homes better suited to their changing life circumstances."

Properties remained on the market for 32 days in November, compared to 29 days in October and 25 days in November 2023.

First-time buyers accounted for 30% of November sales, an increase from October's 27% but below the 31% recorded in November 2023. The NAR's 2024 Profile of Home Buyers and Sellers reported the lowest-ever annual share of first-time buyers at 24%.

Cash transactions represented 25% of November sales, declining from 27% in both October 2024 and November 2023. Individual investors and second-home buyers, who typically make cash purchases, accounted for 13% of homes sold in November, down from 17% in October and 18% the previous year.

Freddie Mac reported the 30-year fixed-rate mortgage averaged 6.6% as of December 12, showing a decrease from 6.69% the previous week and 6.95% a year ago.

In the single-family home sector, sales increased 5.0% to a seasonally adjusted annual rate of 3.76 million in November, with the median price reaching $410,900. Condominium and co-op sales also rose, climbing 2.6% to 390,000 units, though this represents a 4.9% decrease from the previous year. The median existing condo price stood at $359,800, up 2.8% from November 2023.