New numbers from the National Association of Realtors show sales of previously owned homes down in November from the month before. The decline was mostly in the South and West, as the Northeast and Midwest saw gains month-over-month. But despite slowing from October’s pace, homes are still selling quickly. In fact, 45 percent of the homes sold in November were purchased less than a month after listing. Lawrence Yun, NAR’s chief economist, says low inventory is the primary factor causing unevenness in the market. “Sales will be choppy when inventory levels are low, but the economy is otherwise performing very well with more than 2 million job gains in the past year,” Yun said. Still, too few homes for sale is likely holding sales back. For example, compared to last year, there’s been a 16 percent decline in homes sold below $100,000 and a 4 percent decrease in sales between $100,000 and $250,000. With a significant portion of home buying demand coming from first-time and entry-level buyers looking for affordable options, available inventory is an issue. Fortunately, recent data shows new home construction is on the rise, which should help bring some needed supply to the housing market. More here.
Homes Sell Quickly Even As Market Slows Down