Home sales leveled off in November after a busy few months
After much of the fall’s strong overestimate, buyers were off for a while in November.
According to the American Association of Realtors (National Association of Realtors) seasonally adjusted monthly index of pending home sales, signed a contract to buy a house in this month, only rose 0.2% in October.
The index is up 0.8 per cent from November 2016, its first annual gain since last June. Pending sales are an indicator of future sales revenue in the next two months.
Sales of existing and newly built homes have slowed in the summer, but have risen sharply in October and November, and are surprisingly a drag on the market. The supply was further weakened in November, which could be part of a pullback.
NAR chief economist at such a time (Yun), said: “as the earlier this summer, the real estate market is more strong than Xia Jigeng earlier this year, backed by creating jobs and economic growth.
“However, new buyers flooded the market and soon found that their options were limited and the competition was strong. Real estate agents said many possible buyers earlier this year were still trying to buy houses because of tight supplies and rising prices, “said yun.
Housing prices continued to rise strongly, accelerating from earlier this year as demand boomed. The supply of homes for sale fell to 3.4 months in November, the lowest since the NAR began tracking supplies in 1999.
Home prices rose 6.2 percent in October, according to the standard & poor’s CoreLogic case-shiller index. This is accelerating from September. Rising prices are hurting demand. The demand index for Redfin, a real estate brokerage, fell in November after much of the fall. The index measures family travel, quotes and contracts.
Nela Richardson, chief economist at Redfin, said: “three years of low inventories are affecting buyers’ demand for travel and activity. “People also want to buy a home, especially when mortgage rates are rising and house prices are rising, especially in the middle and low prices, there are not enough houses to sell.
The forecast for 2018 is higher, but not high. Unless supply increases, sales may not see big gains. Home builders are ramping up production, but at a slower pace. Potential sellers remain on the sidelines, fearing they can’t find or can afford another home.
“There is room for growth in most areas, but overall activity may be slightly negative across the country,” Yun said. The market for high house prices and property taxes could be affected by a reduction in tax incentives for homeowners.
In the northeast, home sales rose 4.1%, up 1.1% from a year earlier.
In the Midwest, monthly sales rose 0.4%, an average annual gain of 0.8%.
Southern home sales were down 0.4 per cent, but were up 2.5 per cent from November.