Existing-home sales in the U.S. ticked up in November 2018 over the previous month, but had the largest annual drop since May 2011, per the National Association of Realtors' data.
For the month, sales of existing homes grew 1.9 percent to a seasonally-adjusted annual rate of 5.32 million, while decreasing 7 percent annually. Realtor.com reports that sales have dropped year-over-year in all but one month in 2018 to date. Meanwhile, the median price for existing homes grew 4.2 percent annually to $257,700. NAR chief economist Lawrence Yun says, “There is still a housing shortage for affordable homes that many moderate to middle-income families will be looking for."
This year’s sales slowdown has stemmed from growing challenges for the housing market. A shortage of homes for sale at a time when continued job and wage growth are supporting demand have contributed to a rapid run-up in home prices.
Meanwhile, mortgage rates have risen in the last year and appear to be nearing 5 percent, a threshold analysts say could deter many from purchasing a home. The average interest rate on a 30-year fixed-rate mortgage in November was 4.87 percent, up from 4.03 percent in January, according to Freddie Mac.