MNI: US Nov Existing Home Sales See 'Very Small Gain' - NAR

The pace of existing home sales rose by 0.5% to a 4.13 million seasonally adjusted annual rate in November, the fastest pace since February, the National Association of Realtors said Friday. Sales decreased 1.0% year over year.

"Existing-home sales increased for the third straight month due to lower mortgage rates this autumn,” said NAR chief economist Lawrence Yun. "This is a very small gain," he said. "This is no post-government shutdown surge ... Not really seeing any breakout." 

The inventory of unsold existing homes decreased 5.9% to a 4.2 month supply. "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," Yun said. (See: MNI INTERVIEW: Fed In Easing Territory After Rate Cuts - Tracy) 

The national median home price was up 1.2% to USD409,200. “Wage growth is outpacing home price gains, which improves housing affordability. Still, future affordability could be hampered if housing supply fails to keep pace with demand,” Yun said. The average 30-year fixed-rate mortgage in November was 6.24%, according to Freddie Mac, down from 6.25% in October and 6.81% one year ago.

Yun expects a 14% increase in home sales in 2026, assuming a 6% average mortgage rate next year.