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More Home Inventory = More Homes Sold

 

The National Association of Realtors released their Existing Home Sales report last week, and it showed that existing home sales fell in the month of November.  This was the first time in five months where we didn’t see gains with this number.  Despite that, the year over year number showed that existing home sales were 25.8% higher!  That is enormous growth, and it is even stronger when you take into account how low housing inventories are.

Speaking of inventory, total housing inventory declined yet again and is now at 1.28 million homes, which represents a decline of about 22% from a year ago and a 2.3-month supply at the current sales pace.  The previous read showed a 2.5-month supply of homes.  On average homes were sold in 21 days, proving and assuring us how demand for homes is still very strong even at the current level of prices.

In regards to prices, median existing home price increased by 14.6% since last November and is now at $310,800.  Remember this is median price, so this shows the middle number in between all the homes sold above it and below it.  This does not mean appreciation is at a 14.6% level.  A more accurate read on appreciation is closer to 7% as explained by the Case-Schiller Index. 

 

Source: http://bit.ly/38vxNKT