Friday, December 26, 2014WASHINGTON -- After hitting their highest level of the year, sales of existing houses sales slid in November as fewer houses were put on the market, the National Association of Realtors reports. Houses sold declined across the United States compared to October.
Total sales -- completed transactions that comprise single-family houses, townhouses, condominiums and co-ops -- fell 6.1% to a seasonally adjusted annual rate of 4.93 million from a downwardly revised 5.25 million in October. Sales dropped to their lowest annual pace since May (4.91 million) but are above year-over-year levels (up 2.1% from last November) for the second straight month.
Lawrence Yun, chief economist for the association, said sales activity was choppy throughout the country and the number of residences available for sale began its seasonal decline. “Fewer people bought homes last month despite interest rates being at their lowest levels of the year,” he noted.
In the Midwest, existing-house sales fell 8.9% to an annual level of 1.13 million and are 1.7% below November 2013. The median price in the Midwest was $160,500, up 7% from a year ago.
The median existing-house price for all types of residences was $205,300, 5% above November 2013, the 33rd consecutive month of year-over-year price gains.
Total housing inventory at Nov. 30 fell 6.7% to 2.09 million available for sale, which represents a 5.1-month supply at the current pace -- unchanged from October. Despite the tightened supply, unsold residence remains 2% higher than a year ago, when 2.05 million existing homes were available for sale. “Lagging homebuilding activity continues to hamstring overall housing supply and is still too low in relation to this year’s promising job growth,” Yun said. “Much faster price and rent appreciation -- easily exceeding wage growth -- will occur next year unless new construction picks up measurably.”
All-cash sales comprised 25% of transactions, down from 27% in October and 32% in November 2013.
Individual investors, who account for many cash sales, bought 15% of residences, unchanged from October and below November 2013 (19%); 61% of investors paid cash in November.
The percent share of first-time buyers climbed to 31%, up from 29% in October and is the highest share since October 2012 (also 31%). First-time buyers have represented an average of 29% of buyers through Nov. 30.
Properties stayed on the market 65 days on average longer than October, 63 days, and a year ago, 56 days.
Published by The Business Journal, Youngstown, Ohio.
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