US DATA: Existing Home Sales Still Soft Despite Modest Upside Momentum

Existing home sales rose in November to the highest since February at 4.27M (seasonally-adjusted, annual rate). That was weaker than the expected 4.15M but up from 4.11M in October and marked a 3rd consecutive sequential increase. Overall existing sales data point to still-soft housing market dynamics amid high mortgage rates, though we continue to await the release of delayed "official" government data on residential investment in recent months.

• In the report, National Association of Realtors' Chief Economist Lawrence Yun attributed the improvement to "lower mortgage rates this autumn" but cautioned that "inventory growth is beginning to stall. With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months."
• Inventory indeed fell sharply M/M in November, with a 5.9% drop to 1.43M homes for sales an 8-month low (all NSA, this is actually up from 1.33M a year prior) meant that implied months of supply fell to 4.2 from 4.4 for the lowest since March.
• While still above 4, it's tighter than the mid-year levels when it appeared that the existing homes market was on an inexorably loosening trajectory amid sustained high mortgage rates and weakening labor market/confidence. This is a typical seasonal pattern but overall supply this year has been at  its highest in a decade.
• Median prices picked up 1.2% Y/Y ($409.2k) but this is weaker than inflation and very subdued vs the pandemic years with gains well into double-digits.