Existing Home Sales Remained Strong in November Amid Tight Supply

Sales of existing homes increased 1.9 percent in November, to a 6.46 million seasonally adjusted annual rate. Sales are still down 2.0 percent from a year ago. Sales in the market for existing single-family homes, which account for about 89 percent of total existing-home sales, rose 1.6 percent in November, coming in at a 5.75 million seasonally adjusted annual rate (see first chart). From a year ago, sales are down 2.2 percent. Condo and co-op sales increased 4.4 percent for the month, leaving sales at a 710,000 annual rate for the month versus 680,000 in October (see first chart). From a year ago, condo and co-op sales are roughly unchanged.

The dominant single-family segment saw sales rise in two regions of the country and come in unchanged in the other two. Sales rose 2.6 percent in the West and posted a gain of 2.4 percent in the South, the largest region by volume. Sales were unchanged in the Northeast, the smallest region by volume, and in the West. Sales are still down in three of the four regions measured from a year ago (-13.7 percent in the Northeast, -0.7 percent in the Midwest, and -4.1 percent in the West, but up 1.2 percent in the South).

Total inventory of existing homes for sale fell in November, declining 9.8 percent to 1.11 million, leaving the months’ supply (inventory times 12 divided by the annual selling rate) down 0.2 months at 2.1; months’ supply was as low as 1.9 at the beginning of the year and as high as 2.6 in July and August.

For the single-family segment, inventory was down 10.3 percent for the month at 960,000 and is 11.1 percent below the November 2020 level. The months’ supply was 2.0, down from 2.3 in the prior month (see bottom of first chart).

The condo and co-op inventory fell 5.5 percent to 154,000, pushing the months’ supply down to 2.6 from 2.9 in October.  Months’ supply is 23.5 percent below November 2020 (see bottom of first chart).