Existing Home Sales Surge in November

Home Sales in the Twin Cities Although November traditionally brings somewhat of a slowdown to the housing market, Americans purchased homes last month at the fastest pace seen in almost a decade. According to recently released figures from The National Association of Realtors, sales of existing homes jumped by 0.7% in November, bringing the seasonally adjusted annual rate to 5.61 million. 

While the increase in sales from October to November was fairly minimal, the adjusted annual rate is the highest the national market has seen since sales reached 5.79 million back in February of 2007. And compared to this time last year, overall sales are also up by an eye-catching 15%. 

Not surprisingly, inventory is still driving home prices up, as the national median home price increased to $234,900 in November, which is up nearly 7% from one year earlier. Unfortunately for buyers who haven’t yet found the right home, mortgage rates also reached a 52-week high of 4.16%, which marks the first time rates exceeded 4% since 2015. 

Industry experts are projecting a much smaller gain in home sales in 2017 thanks to higher rates, tightened inventory, and declining affordability across the board. Even still, a strong job market and strong consumer confidence should keep the market healthy heading into the new year, which is still great news for anybody in the Twin Cities who might be looking to sell in the next 12 months or beyond. 

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