Existing-home sales in the U.S. declined for the 10th straight month in November, the National Association of Realtors reported today. This record stretch of declines reflects the high mortgage rates and home prices that have caused many buyers to leave the market.
“Today’s sales activity in November is essentially almost the same as that lockdown period back in May 2020,” said Lawrence Yin, NAR’s chief economist, and “… are clearly reflecting the rapid rise in mortgage rates.”
Sales of previously owned homes dropped 7.7 percent in November from October to a seasonally rate of 4.09 million. This rate also is down some 37 percent since January. The housing market slowdown also illustrates the effect of the Federal Reserve’s aggressive interest-rate increases in an effort to fight high inflation by slowing spending.
While home prices have declined from their springtime peaks, nationally prices are still up from last year, largely due to the lack of supply. The median existing hone price rose 3.5 percent in November from the prior year to $370,000, reports NAR. The record, reached in June, was $413,800.