Home sales increased in the hot employment market in November, fears of rising rates

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Houston, Texas-August 12: The newly sold home will be on display in Houston, Texas on August 12, 2021. House prices rose during the pandemic due to lower interest rates and more telecommuting. House prices across the country continue to skyrocket in the second quarter as strong demand continues to overwhelm the supply of homes for sale. Nationally, the median home sales price for single-family homes rose 22.9% in the second quarter. (Photo by Brandon Bell / Getty Images)

Brandon Bell | Getty Images News | Getty Images

According to the Seasonally Adjusted Numbers of the National Association of Real Estate Agents, sales of pre-owned homes in November increased 1.9% from October to 6.46 million units. Sales were down 2.0% from November 2020.

These sales reflect the closure of the home, so contracts may have been signed in September and October.

Regionally, there was no change in monthly northeastern sales. It rose 0.7% in the Midwest and 2.9% in the South. In Europe and the United States, it increased by 2.3%.

According to Lawrence Yun, chief economist at NAR, sales could increase due to concerns over strengthening the employment market and significantly higher mortgage rates among potential buyers next year.

The number of units sold at the end of November was 1.11 million, a decrease of 13% from the same month of the previous year. 2. At the current sales pace, which represents a month’s supply.

“A new listing is on the market, but it’s being taken away soon,” Yun said, adding that he expects inventories to drop further in December.

The tight supply continued to put upward pressure on house prices. The median existing homes sold in November were $ 353,900. This is a 13.9% increase from November 2020. Price increases have slowed from a 20% increase over the previous year.

Sales were stronger in the more expensive category, with home prices rising 37% year-on-year between $ 750,000 and $ 1 million, and home prices above $ 1 million rising 50%. By comparison, homes priced between $ 100,000 and $ 250,000 fell 19%. Supply is the thinnest at the bottom of the market.

The market is also moving very rapidly, with on average homes staying in the market for only 18 days.

The share of sales to first-time buyers decreased from 32% in November 2020 to just 26%. The share of sales to investors increased from 14% in the previous year to 15%.

Mortgage rates also didn’t help buyers. According to Mortgage News Daily, interest rates on popular 30-year fixed mortgages started at 2.92% in September and ended at 3.22% in October, although interest rates are still low historically. This has resulted in a significant loss of purchasing power, especially for entry-level or first-time buyers.

George Ratiu, Senior Economist at Realtor.com, said: “But the low number of homes for sale remains a major challenge, with existing homeowners looking for the next home and their first purchase looking for a place to call their home. Both of them are confused. “

Home sales increased in the hot employment market in November, fears of rising rates

Source link Home sales increased in the hot employment market in November, fears of rising rates

The post Home sales increased in the hot employment market in November, fears of rising rates appeared first on Eminetra.

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