Key Takeaways from the November Existing Home Sales Report
Existing home sales dropped sharply month-month, but were up slightly year-year
- Existing home sales slowed substantially in November from October, declining 6.1 percent to 4.93 million units at a seasonally-adjusted annual rate (SAAR), the largest month-over-month percent drop since the trough of the housing bust in February 2011.
- But compared to a year earlier, existing home sales were up 2.1 percent – the first time since October 2013 that sales have posted two consecutive months of annual increases.
- Zillow predicted existing home sales to fall 1.7 percent from October, to 5.17 million units (SAAR); the consensus forecast was for a decline of 1.1 percent.
- While October existing home sales surprised most analysts on the upside, November’s data surprised most analysts on the downside, highlighting the volatility in recent sales.
- Low interest rates were insufficient to overcome the headwinds posed by a low homeownership rate, rising vacancies and rising prices.
The median sales price of existing homes fell month-month for first time since February
- The median seasonally-adjusted sales price of existing homes fell 1.4 percent from October, to $208,000 – the same as in August.
- The monthly decline represents the first month-over-month drop in the median sales price since February 2014, and the largest percent drop since July 2011.
- Compared to a year earlier, the median sales price of existing homes sold in November was up 5.1 percent