Existing Home Sales Decline In November

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Peoples Home Equity shares the latest existing home sales report from the National Association of Realtors. The lender also puts the report into the context of the current market

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This marks the 33rd consecutive month of year-over-year price gains

After reading through the latest existing home sales report, Peoples Home Equity thinks the housing market is simply going through is usual seasonality.

Existing home sales for November was reported by the National Association of Realtors (NAR) on Monday, December 22nd. The NAR said that the annual pace of existing home sales fell -6.1% month-over-month. Commenting on the month decline, Lawrence Yun, chief economist at the NAR said “Fewer people bought homes last month despite interest rates being at their lowest levels of the year.” He continued with “The stock market swings in October may have impacted some consumers’ psyches and therefore led to fewer November closings. Furthermore, rising home values are causing more investors to retreat from the market.”

On a positive note, “the median existing-home price for all housing types in November was $205,300, which is 5.0 percent above November 2013. This marks the 33rd consecutive month of year-over-year price gains.”

In terms of regions, “November existing-home sales in the Northeast declined 4.2 percent to an annual rate of 680,000, but are still 4.6 percent above a year ago. The median price in the Northeast was $246,100, which is 1.3 percent above a year ago.” This is the second best performing region on a year-over-year basis.

“In the Midwest, existing-home sales fell 8.9 percent to an annual level of 1.13 million in November, and are now 1.7 percent below November 2013. The median price in the Midwest was $160,500, up 7.0 percent from a year ago.” Peoples Home Equity knows the Midwest can be a volatile area in terms of home prices due to the stronger seasonality of the housing market. The winter can affect consumer behavior and home sales more in the Midwest than warmer areas. Notice how the Midwest has the low median priced properties which are why many cities in this region draw investors for rental income.

Existing-home sales in the South decreased 3.2 percent to an annual rate of 2.09 million in November, but remain 5.0 percent above November 2013. The median price in the South was $176,500, up 5.2 percent from a year ago.

Existing-home sales in the West dropped 9.6 percent to an annual rate of 1.03 million in November, and remain 1.0 percent below a year ago. The median price in the West was $292,700, which is 3.5 percent above November 2013.” Peoples Home Equity thinks demand is more sensitive to the price. West Coast real estate is just getting too high priced.

If in need of a mortgage, Peoples Home Equity has 16 branch locations in all 4 regions of the United States.

Contact a Peoples Home Equity loan officer today at: 262-563-4026

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Giorgio U Ferrero
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