Existing Homes Sales Surge 1.9% in November but Remain Short of 2020 Levels

Source: NAR

Sales of existing homes in the US reached an annual rate of 6.46 million in November, up 1.9% from October. SPY is up +0.29%, DXY is down 0.26%.

• The increase in existing home sales happened even as housing prices reached $353,900 in November, an increase of 13.9% from the prior year. 
• House prices rose in all regions, with the South posting the highest increase. The increase in prices happened for the 117^th straight month, the longest streak ever.
• House inventory in November was 1.11 million units, a decrease of 9.8% from October and 13.3% below last year. Unsold inventory is now at a 2.1-month supply at the existing sales pace. 
• NAR’s chief economist Lawrence Yun attributes the rise in house prices to supply-chain constraints which have led to near record-low supply of new units to the market.
• Yun projects the rate of price inflation for existing homes to go down next year, with the pace of gains expected at 5.7%.
• US house sales are now 2.0% below last year when it was recorded at 6.59 million.