| Consensus | Consensus Range | Actual | Previous | Revised | |
| Annual Rate | 4.150M | 4.100M to 4.250M | 4.13M | 4.10M | 4.11M |
Highlights
Moderation in mortgage rates in September and October, along with lower prices and modest supplies, helped boost overall home sales in November. Home resales were concentrated in the single-family home sector while sales condominiums and cooperatives declined. Homebuyers are entering the housing market cautiously and purchase only when they find the right unit at the right price with an affordable mortgage.
Sales of existing homes are up 0.5 percent in November to a seasonally adjusted annual rate of 4.13 million units, up 0.5 percent from the prior month but down 1.0 percent from a year ago. The pace of sales in November is just below the consensus of 4.15 million units in the Econoday survey of forecasters.
Sales of existing single-family homes is up 0.8 percent to 3.75 million units from the prior month but down 0.8 percent from November 2024. Sales of condos and co-ops are down 2.6 percent to 380,000 units from October, and down 2.6 percent from a year ago.
Sales of existing homes are for contracts closes using mortgages usually qualified for in the prior month or two. Sales were higher late last year despite the average monthly Freddie Mac rate for a 30-year fixed rate mortgage at 6.81 percent. The average rate was 6.35 percent in September. The rate dipped to 6.25 percent in October after which the rate shows little movement. The monthly average is 6.24 percent in November. The rate in December to date averages 6.21 percent. Given that sales are usually slow in December, the slight decline probably won't spark much homebuying, although it may support some refinancing activity.
The supply of homes available for sale is slightly tighter at 4.2 months in November after 4.4 months in October, but looser than the 3.8 months in November 2024. The median price of an existing home is down 1.4 percent to $409,200 in November, but up 1.2 percent compared to a year earlier. Prices tend to fall in the second half of the year.
The average number of days a listed unit is on the market is 36 in November, up from 34 days in October and 32 days in November 2024. Longer listing times point to conditions more favorable for homebuyers and less so for home sellers. First-time homebuyers account for 30 percent of total sales, down from 32 percent in October and the same as in November 2024.
Market Consensus Before Announcement
Sales seen marginally better at 4.15 million in November after 4.10 in October.
Definition
Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.
Description
This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.
Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.
Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
