ThomasRiddleGroup

ThomasRiddleGroup

National Housing Market Weathering Higher Mortgage Rates

National home salesThe sales of new U.S. single family homes fell only slightly in November in the wake of higher mortgage rates.

Meanwhile, prices on new homes continued to rise, signaling to national housing market experts that the market truly is weathering higher mortgage rates, according to a recent news article.

National Housing Market Showing Resilience, Experts Say

The Commerce Department recently reported that sales fell 2.1 percent to a seasonally adjusted annual rate of 464,000 units.

Here’s what else was revealed about recent market activity:

  • November’s numbers marked a fall from October’s revised 474,000 pace, which was the highest level since July 2008.
  • For November, economists had expected new home sales to be at a 445,000 unit pace in November.
  • Compared with November 2012, sales were up 16.6 percent.
  • Although higher mortgage rates have slowed the rate of home resales since August, activity is expected to accelerate next year.
  • Experts credit this in part to employment gains.
  • What’s more, experts say that a lean housing inventory is also expected to increase activity.
  • For instance, in November, the supply of houses on the market decreased by 6.7 percent.
  • The median price of a new home rose 10.6 percent from a year ago.
  • If the housing market remained at November’s sales pace, it would take 4.3 months to clean the market of available homes, which is the smallest inventory there’s been since June.
  • In October, the housing market inventory was at 4.5 months.
  • For a reference point, a 6-month supply is normally considered as a healthy balance between supply and demand.
  • Although home sales decreased in the Midwest and South, sales showed strong gains in the West and Northeast.

Helping You Buy and Sell Homes

The recent activity is actually encouraging, despite the fact that the sale of new single family homes actually dropped.

That’s because the decrease was actually pretty slight, meaning that the national housing market is adapting to higher mortgage rates better than even some experts anticipated.

Check back here soon for more national real estate news that affects your efforts as home buyers and sellers!

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email
Recent Posts

Should I Sell My House This Year?

The housing market is undergoing a shift this season as buyer demand slows and the number of homes for sale grows. But that shift actually gives you some unique benefits when you sell. Here’s a look at the key opportunities you have if you list your house this fall.

Get in Touch

Have questions? We’re happy to help. Ask us here and we’ll get back to you right away.

Compare listings

Compare

Get Started With A Free, No-Obligation, Market Analysis.

As full-time and fully dedicated real estate agents, our sole focus will be on your sale and your happiness. We will always be a call, email, or text away to advise you as needed.

Note: Please be assured we will use this information only to send you the information you have requested and we will never share or rent your contact information with any other party. By giving us your name and email address, you are giving Thomas|Riddle Real Estate Group permission to contact you.