Low inventories hold back November home sales
|Existing Home Sales Decline Slightly
- Existing home sales fell 2.5% to a 6.69-million unit pace in November. Existing sales reflect closings and lag pending sales by about two months. The drop was expected.
- Sales were held back by exceptionally low inventories. Total housing inventory fell 9.9% from October to 1.28 million homes, or just a 2.3-month supply. Seventy-three percent of homes sold in November were on the market for less than one month.
Rising Demand is Pulling Prices Higher
- COVID has boosted demand for homes but has also meant that fewer homeowners are willing to put their homes on the market. The imbalance pulled home prices higher, with the median price of existing single-family homes jumping 15.1% from a year ago.
- The recent surge in prices has brought memories of the housing bubble. Key differences today are the absence of widespread speculation and the higher credit quality of today’s borrowers.
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