Housing Market

November home sales near five-year high despite slight decline

mortgage rateDespite a slight decline, November home sales remained near a five-year high, up 16.6 percent from last year and the second-highest sales pace after October.

October new home sales were revised to 474,000 annualized units, marking the highest sales activity in five years.

“Rising mortgage rates over the summer put downward pressure on new home sales, but activity increased when interest rates moderated in October,” Doug Christman, a research assistant at NAFCU, said. “Tight inventories continued to put upward pressure on new home prices and constrain overall activity, but building permits rose to the highest level in more than five years in October, indicating expectations for increased future sales.”

In November, new home sales in the West rose 31.1 percent, and in the Northeast, new home sales rose 15.2 percent. Sales fell 26.6 percent in the Midwest and 8.1 percent in the South. The median new-home price in November was $270,990, compared to $259,200 in October.

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