Real Estate Inventory Reaches Three-Year Low

In November, the national housing inventory reached its lowest point since April 2006 as the sales rate substantially improved over a year ago. Although year-over-year existing home sales …

In November, the national housing inventory reached its lowest point since April 2006 as the sales rate substantially improved over a year ago. Although year-over-year existing home sales grew, the national median home price was still 4.3% below November 2008. For more on this, see the following article from HousingWire.

While existing-home sales were up 7.4% amid a surge of last-minute first-time homebuyers looking to close on purchases before the original expiration of the $8,000 tax credit, the national housing inventory hit a nearly four year low, according to the National Association of Realtors (NAR).

The seasonally adjusted annual rate of existing home sales, including single-family, townhomes, condominiums and co-ops transactions, was 6.54m in November. That’s up from 6.09m in October and 44.1% higher than the rate of 4.54m in November 2008. The sales rate is the highest its been since February 2007, when it was 6.55m.

“We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010,” said NAR chief economist Lawrence Yun.

Try Gemini Today! 123

The Gemini Exchange makes it simple to research crypto market, buy bitcoin and other cryptos plus earn Up to 8.05% APY!

Housing inventory declined 1.3% at the end of November to 3.52m existing homes available for sale. That’s a 6.5-month supply of homes at the current sales pace, down from a seven-month supply in October. The national housing inventory is down 15.5% from where it was last year and the lowest since April 2006, when there was a 6.1-month supply.

Yun said nearly all markets experienced a solid sales gain from one year ago, with the lone exceptions being the California cities of San Diego, Riverside, and Sacramento, where a shortage of lower-priced homes is limiting sales.

The national median price for all types of existing homes was $172,600 in November, 4.3% below November 2008.

Regionally, the Midwest experienced the greatest increase in existing home sales rate at 1.13m in November, an 8.4% increase from October and up 52.7% higher than November 2008.

In the West, existing-home sales increased to an annual rate of 1.46m in November, up 10.6% from October and 28.1% from one year ago.

The rate in the Northeast increased 6.6% month-over-month to 1.13m in November. That’s 52.7% higher than in November 2008.

The smallest regional increase was in the South, where the rate of 2.39m in November was up 4.8% from October and 44.8% higher than last year.

This article has been republished from HousingWire. You can also view this article at
HousingWire, a mortgage and real estate news site.

Share This:

In this article