A home in Nashville, Tenn., was the site of an open house in October.
Photo: Luke Sharrett/Bloomberg News
U.S. home sales rose in November as low mortgage-interest rates and a strong job market continued to drive robust demand.
Existing-home sales increased 1.9% in November from the prior month to a seasonally adjusted annual rate of 6.46 million, the highest pace since January, the National Association of Realtors said Wednesday. November sales fell 2.0% from a year earlier.
Existing-home sales are on track for their strongest year since 2006, and sales in the first 11 months of the year rose 10% from a year earlier, NAR said. Low interest rates, combined with higher household savings and a desire for more space to work from home, prompted buyers to enter the market. A large wave of millennials aging into their prime home-buying years also fueled demand.
At the same time, the supply of homes for sale dropped to a record low at the beginning of the year and has stayed well below normal all year.
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As buyers compete for a limited number of homes on the market, home prices soared. The median existing-home price rose 13.9% in November from a year earlier, NAR said, to $353,900.
“Determined buyers were able to land housing before mortgage rates rise further in the coming months,” said Lawrence Yun, NAR’s chief economist.
Economists surveyed by The Wall Street Journal expected a 2.5% monthly increase in sales of previously owned homes, which make up most of the housing market.
Write to Nicole Friedman at [email protected]
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