Median prices for existing-homes grew year-over-year, despite a slowdown in existing-home sales for the month of November according to a recent report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops declined 4.3 percent, a pace of 4.9 million units for the year. November marks the first time on 29 months that existing-home sales were below year-ago levels.
NAR chief economist Lawrence Yun sees multiple forces at play. "Home sales are hurt by higher mortgage interest rates, constrained inventory and continuing tight credit," he said. "There is a pent-up demand for both rental and owner-occupied housing as household formation will inevitably burst out, but the bottleneck is in limited housing supply, due to the slow recovery in new home construction. As such, rents are rising at the fastest pace in five years, while annual home prices are rising at the highest rate in eight years."
Nationally, the median time for homes to sell was 56 days in November, a slight increase from 54 days for October, yet well below the 70 days on market registered in November 2012.