US housing market: Home sales tick up in November; annual volumes slip as prices stay elevated

Sales of existing homes in the US rose modestly in November from the previous month but declined compared with a year earlier, as higher prices continued to weigh on affordability despite relatively stable mortgage rates, according to data released on Friday, AP reported.

Existing home sales increased 0.5 per cent from October to a seasonally adjusted annual rate of 4.13 million units, the National Association of Realtors said. However, sales were down 1 per cent from November 2024, marking the first year-on-year decline since May. The figure was marginally below economists’ expectations of 4.14 million units, according to FactSet.The national median home price rose 1.2 per cent from a year earlier to $409,200.

This marked the 29th consecutive month of annual price increases, even as overall housing activity remained subdued.The US housing market has been in a prolonged slowdown since 2022, when mortgage rates began rising sharply from pandemic-era lows. Although long-term mortgage rates have hovered near their lowest levels for the year. Affordability pressures remain high due to elevated prices and borrowing costs.Sales volumes have largely stagnated at around a 4-million-unit annual pace since 2023, well below the historical average of about 5.2 million units.