Existing Home Sales Fall From October Peak

Existing home sales in November fell far short of sales the previousrnmonth according to today’s report from the National Association of Realtors® (NAR).  Sales in November were at a seasonallyrnadjusted annual rate of 4.93 million units, the lowest since May’s 4.91 millionrnunit pace and a 6.1 percent decline from the previous month.  November sales were still 2.1 percent higher</bthan a year earlier, the second consecutive month of year-over-year gains. </p

NAR President Chris Polychron says Fannie Mae and Freddie Mac’s new lowrndownpayment program should improve access to credit for responsible buyers.rn”NAR applauds Fannie and Freddie’s commitment to homeownership by servingrncreditworthy borrowers who lack the resources for substantial downpayments plusrnclosing costs with its new downpayment program,” he said. “The new program<bmitigates risk with strong underwriting and ensures that responsible buyersrnhave access to safe and affordable mortgage credit. Furthermore, NAR believesrnlenders must do their part to ensure loans are prudently underwritten and arernmade available to qualified borrowers.”</p

Six percent of sales in November were of foreclosed property and 3 percentrnwere short sales.  The 9 percentrndistressed sales total was unchanged from October and was the fourth month thisrnyear those sales were in single digits.  Foreclosuresrnsold for an average discount of 17 percent below market value in November (15rnpercent in October), while short sales were discounted 13 percent (10 percentrnin October).      </p

Median marketing time for homes sold in November was 65 days, two daysrnlonger than the previous month and nine days more than a year earlier.  Short sales took a median of 116 days tornsell, foreclosures 65 days, and non-distressed properties 63 days.  Thirty-two percent of homes sold in Novemberrnwere on the market for less than a month.</p

Sales fell in all of the nation’s regions in November compared to Octoberrnand were down year over year in two of the four.  Prices rose everywhere on an annualrnbasis.  </p

In the Northeast sales declined 4.2 percent to an annual rate of 680,000,rnbut remain 4.6 percent above a year ago. The median price in the Northeast wasrn$246,100, 1.3 percent above a year ago.</p

Midwest sales fell 8.9 percent to an annual level of 1.13 million inrnNovember, and are now 1.7 percent below November 2013. The median price in thernMidwest was $160,500, up 7.0 percent from a year ago.</p

Existing-home sales in the South decreased 3.2 percent to an annual rate ofrn2.09 million but remain 5.0 percent above November 2013. The median price inrnthe South was $176,500, a 5.2 percent annual increase. </p

Sales in the West dropped 9.6 percent to an annual rate of 1.03 million inrnNovember, and remain 1.0 percent below a year ago. The median price in the Westrnwas $292,700, up 3.5 percent from November 2013.

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