ARLINGTON, Va. – Home sales were up during November by 1.6% to 310,000 annualized units, and up 9.8% over one year earlier.
But the good news is being tempered by the fact that sales are still at some of their lowest levels ever, even with the ongoing, but slow, improvement. Home sales in November have been strongest in the southern U.S. (up 12.9%) and the Midwest (up 7.5%) over October, according to analysis by NAFCU, while the Northeast and the West saw declines (26.3% and 16.9% respectively). Compared to one year earlier, home sales in the Midwest increased a robust 62.9% in November, a followed by the South (6.7%) and the West (1.5%). The Northeast saw a loss in year-over-year sales of 30%, NAFCU noted.
“Home prices relative to household income are well below normal levels. Coupled with low mortgage rates, housing affordability is remarkably high,” NAFCU said. “Still, the struggles in the labor sector are discouraging many from entering the market. The surplus of distressed houses on the market is eating into new home sales, and that trend should continue as the logjam of foreclosures in processing appears to be easing.”
