US home sales hit slowest pace in six months during November
WASHINGTON, United States (AP) — Fewer Americans bought homes in November as buying slid to its slowest pace in six months.
The National Association of Realtors said Monday that sales of existing homes fell 6.1 per cent to a seasonally adjusted annual rate of 4.93 million. That was down from a revised annual pace of 5.26 million in October. Over the past 12 months, sales have risen 2.1 per cent.
The combination of higher home prices and relatively stagnant incomes has reduced affordability and restrained buying. A recent decline in mortgage rates has yet to lure more buyers into the market. At the same time, fewer distressed properties and bargains, which tend to attract investors, are coming onto the market.
The Realtors estimate that 2014 sales will end up below 2013 levels. Sales have slumped much of this year after a three-year rally that followed the recession and the implosion of the housing market. Harsh winter weather crippled home buying at the start of 2014. Lower affordability, resulting from tight credit, rising home prices and essentially flat incomes, held back sales for the rest of the year.
The realtors have estimated that 4.94 million existing homes will be sold this year, down three per cent from 5.09 million in 2013. Analysts say sales of roughly 5.5 million existing homes are common in a healthy real estate market.
The median price rose five per cent over the past 12 months to US$205,300. That’s a positive for owners looking to sell, though it creates an additional challenge for would-be buyers.
The share of first-time buyers climbed to 31 per cent last month from a recent average of 29 per cent. Still, that’s well below the 40 per cent share that has been historically common. The modest percentage of first-time buyers is a sign that affordability remains an obstacle for many who would like to purchase but lack the savings or credit record to do so.
November sales fell in all four major geographic regions: Northeast, Midwest, South and West. Buying activity fell over the past 12 months for homes worth less than US$250,000.