Existing-Home Sales Rise to Record Pace in November
Buoyed by low mortgage interest rates, existing single-family home sales climbed 2.7% to a seasonally adjusted annual rate of 6.94 million in November, up from an upwardly revised pace of 6.76 million in October, toppling the previous record, which was set in June, the National Association of Realtors® announced last month.
“Mortgage interest rates dropped a quarter of a percentage point in late summer and then stabilized,” said David Lereah, the association’s chief economist. “Coupled with a growing labor market and a rising economy, this created optimal conditions for the housing sector.”
Lereah said that home sales should remain strong this year, although activity will be down some from the record-setting pace of 2004, and that’s a good thing. “We think slower sales will help to create a better balance between home buyers and sellers, but with tight inventories of homes available for sale, price appreciation hasn’t slowed yet.”