Strong Job Market and Concerns Over Rising Rates Cause Surge in November Sales

Sales of previously owned homes rose to 6.46 million units in November, a 1.9% increase from October, though year-over-year sales were still 2.0% lower than November 2020 rates, CNBC reports. Southern markets reported the largest month-to-month sales growth with a 2.9% increase followed by a 2.3% increase in the West, a growth rate of 0.7% in the Midwest, and no change in the Northeast.

Sales growth is attributed to a strengthening job market as well as apprehension about high mortgage rates and potentially higher home prices in the year ahead. Inventory continues to decline at a rate of 13% year-over-year, leaving just 1.11 million homes for sale at the end of November.

The median price of an existing home sold in November was $353,900. That is a 13.9% gain from November of 2020. Price gains are slowing from earlier annual gains of about 20%.

Sales were stronger in the more expensive categories, with homes priced between $750,000 and $1 million rising 37% year over year and those priced above $1 million rising 50%. Comparatively, homes priced between $100,000 and $250,000 fell 19%. Supply is leanest on the lower end of the market.

The market is also moving very quickly, with the average days a home stays on the market just 18 days.

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