Existing-home sales increased 5.6 percent to a seasonally adjusted annual rate (SAAR) of 5.81 million in November — up from an upwardly revised 5.50 in October, the National Association of Realtors reported today.
This month’s sales pace is 3.8 percent above November 2016 and is the strongest sales pace seen since December 2006 (6.42 million).
‘Move-up’ buyers are driving the market
The median existing-home price for all housing types in rose 5.8 percent to $248,000, making November the 69th month in a row to see year-over-year gains.
Total housing inventory fell 7.2 percent points month-over-month to 1.67 million homes for sale, while year-over-year inventory dropped 9.7 percentage points, the 30th consecutive month of year-over-year declines. Unsold inventory is at a 3.4-month supply, a 4.0 percent year-over-year decline.
NAR Chief Economist Lawrence Yun says “move-up” buyers — who have hefty down payments — and all-cash buyers are driving the market, leaving first-time buyers who can’t compete in the dust.