A home for sale in Arlington, Va., in November, when the supply of homes for sale fell to a new low.
Photo: saul loeb/Agence France-Presse/Getty Images
Sales of previously owned homes slipped in November from a month earlier, as the supply of homes for sale fell to a new low.
Existing-home sales fell 2.5% in November from October to a seasonally adjusted annual rate of 6.69 million, the National Association of Realtors said Tuesday. The November sales marked a 25.8% increase from a year earlier.
Economists surveyed by The Wall Street Journal expected a 2.2% monthly decline in sales of previously owned homes, which make up most of the housing market.
“Without a doubt, there are too many buyers in relation to the sellers,” said Lawrence Yun, NAR’s chief economist. “That is probably the main driver as to why the sales declined.”
Record-low interest rates have boosted homebuying demand in recent months. Existing-home sales rose for five straight months through October to the highest seasonally adjusted annual rate since 2006. At the same time, fears of virus transmission have made potential sellers wary of putting their homes on the market.
The supply of homes on the market at the end of November was the lowest level on record going back to 1982. A widespread shortage of homes for sale has prompted competition among buyers and pushed prices higher.
The median existing-home price rose 14.6% from a year earlier to $310,800, NAR said.
Write to Nicole Friedman at [email protected]
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