Existing home sales down in November
Dec. 20, 2013 – Existing home sales decreased 4.3 percent in November, with the slowest sales pace since late 2012, according to NAFCU Research Assistant Doug Christman.
Analyzing data from the National Association of Realtors in a Macro Data Flash, Christman attributed the slow sales to a number of factors: “Rising mortgage interest rates, limited housing inventories, and tighter credit all contributed to the slowdown in sales.”
Existing home sales totaled an annualized 4.9 million units, seasonally adjusted, in November, and were down 1.2 percent year over year. All four regions experienced a monthly sales decline, with the West seeing the sharpest downturn with an 8.5 percent decline. Year over year, the Northeast saw an increase in sales of 6.6 percent, while the South only increased 1 percent, the Midwest saw no change, and the West decreased 10.1 percent.
The median existing home price went down from a revised $197,500 in October to $196,300 in November, not seasonally adjusted. This time last year, the median price was $179,400. The months of available inventory increased to 5.1 months in November, from a revised 4.9 months in October.
Despite the slowdown, Christman said “The housing market is expected to remain a key driver of economic growth throughout the coming year.”
NAFCU Macro Data Flash