By Manuel Gutierrez, Consulting Economist to NKBA
Home sales have been in freefall all year, dropping 7.7 percent in November from October, and down 37 percent from January. It’s the 10th straight month of declining sales.
- November sales sank to an annual pace of 4.1 million, down from an annualized 6.49 million home sales at the start of 2022.
- This is the lowest level since May 2020, in the early days of the COVID pandemic, when the nation shut down.
- Sales fell in all four regions, with the West leading the decline, posting a 12.5 percent drop. The South was off 7.1 percent, followed by the Northeast, down 7 percent, and the Midwest, falling 5.6 percent.
- Home prices have begun to ease, rising just 3.5 percent to a median of $371,000 compared to a year ago. This a far cry from the prior two years, when prices jumped by more than 15 percent annually. The median price of a single-family home is slightly higher at $377,000. Prices are highest in the West, with a median of $570,000.
- Housing inventory fell in November to 1.14 million homes, sufficient to support 3.3 months of sales at the current pace. Rising mortgage rates may be enticing fewer owners to put their home in the market.
