Existing Home Sales Rise To The Highest Rate Since January.
The National Association of Realtors reported, this week in real estate, that existing home sales increased for the third straight month in November. Total existing home sales rose to an annual rate of 6.46 million in November, the highest level since January. The Pending Home Sales Index, a forward-looking indicator based on signed contracts, increased 7.5% from 116.5 to 125.2. Below are a few newsworthy events from the third week of December that influence our business:
New Home Sales Jump in November on High Consumer Demand.
New single-family home sales rose in November as housing demand was supported by low-interest rates and strong consumer demand, despite the ongoing building materials challenges impacting the housing industry. The U.S. Department of Housing and Urban Development and the U.S. Census Bureau estimated sales of newly built, single-family homes in November at a 744,000 seasonally adjusted annual pace, a 12.4% gain over downwardly revised October rate of 662,000. The gains for new home sales are consistent with the NAHB/Wells Fargo HMI, which edged up to 84 in December, demonstrating that housing is a leading sector for the economy. Sales are increasingly coming from homes that have not started construction, with that count up 75.4% year-over-year, not seasonally adjusted (NSA). These measures point to continued gains for single-family construction ahead. Full Story…
Existing Home Sales Rise in November Despite Low Inventory.
Fueled by low mortgage interest rates and strong demand, existing home sales increased for a third straight month in November, according to the National Association of Realtors (NAR). However, supply has continued to lag due to ongoing supply-chain disruptions, keeping home prices elevated. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 1.9% to a seasonally adjusted annual rate of 6.46 million in November, the highest level since January. However, on a year-over-year basis, sales were 2.0% lower than a year ago, the fourth annual decline since August 2020. Homes stayed on the market for an average of just 18 days in November, to the same as October and down from 21 days a year ago. In November, 83% of homes sold were on the market for less than a month. Tight supply continues to push up home prices. The November median sales price of all existing homes was $353,900, up 13.9% from a year ago, representing the 117th consecutive month of year-over-year increases, the longest-running streak on record. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI increased 7.5% from 116.5 to 125.2. Full Story…
Mortgage Rates Fall To A Four-Week Low, But Homebuyers Still Pull Back Due To Record Low Listings.
The already competitive housing market is getting even more so, and that is now cutting into mortgage demand. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.27% from 3.30%, with points increasing to 0.41 from 0.39, including the origination fee, for loans with a 20% down payment. The rate was 41 basis points lower the same week one year ago. Applications for a mortgage to purchase a home fell 3% for the week and were 9% lower than the same week one year ago. It is not necessarily that buyer demand has fallen off, it is more likely that buyers simply can’t find a home they like. The number of homes actively listed for sale at the end of November fell to another record low. Mortgage rates began this week higher and climbed more on Tuesday after the stock market recovered from several down days. The expectation is that rates will continue to move higher, although likely in fits and starts, given the market volatility brought on by the Covid omicron variant. Full Story…
Originally compiled & posted by Jason Waugh on the Berkshire Hathaway HomeServices Northwest Real Estate company blog.
