U.S Housing Market Hits 11-Year High
Updated: Dec 21, 2017
U.S. Existing Home Sales Jump 5.6% in November, Hitting 11-year High
"The National Association of Realtors said on Wednesday that existing home sales surged 5.6 percent to a seasonally adjusted annual rate of 5.81 million units last month amid continued recovery in areas in the South ravaged by Hurricanes Harvey and Irma. That was the highest level since December 2006 and followed an upwardly revised 5.50 million-unit pace in October.
Economists polled by Reuters had forecast home sales rising 0.9 percent to a 5.52 million-unit rate in November from a previously reported 5.48 million-unit pace in October.
Existing home sales make up about 90 percent of U.S. home sales. They rose 3.8 percent on a year-on-year basis in November."
“ With supply still tight, the median house price increased 5.8 percent from a year ago to $248,000 in November. That was the 69th consecutive month of year-on-year price gains. In contrast, annual wage growth has struggled to break above 2.9 percent since the 2007/09 recession ended.”
"Despite the recent gains, existing home sales remain constrained by a chronic shortage of houses at the lower end of the market, which is keeping prices elevated and sidelining some first-time buyers, who accounted for 29 percent of transactions last month.
Economists and realtors say a 40 percent share of first-time buyers is needed for a robust housing market.
The number of previously owned homes on the market dropped 7.2 percent to 1.67 million units in November. That was the second lowest reading since 1999. Housing inventory has dropped for 30 straight months on a year-on-year basis."
Find the full article here https://www.cnbc.com/2017/12/20/november-us-existing-home-sales.html