Sales of Existing Homes Decline in November
Purchases of previously owned U.S. homes dropped more than forecast in November as residential real estate struggles to sustain its recovery even as borrowing costs remain low.
Sales fell 6.1% to a 4.93 million annual rate last month, the weakest reading since May, from 5.25 million pace in October, figures from the National Association of Realtors showed in Washington.
The median forecast of 73 economists surveyed by Bloomberg News projected sales would decline to a 5.2 million rate.
Low mortgage rates haven’t been enough to lure back additional prospective buyers who’ve been disappointed with the lack of inventory in the market, according to NAR’s chief economist. A strengthening labor market will be needed to boost growth in the industry as the Federal Reserve considers raising benchmark interest rates.
“I’ve been disappointed by the slowness of the recovery this year, even as the general economy has met expectations reasonably well,” David Sloan, senior economist at 4Cast Inc. in New York, said before the report. “There’s a general caution from consumers given what happened in the recession.”
Estimates in the Bloomberg survey of economists ranged from a sales pace of 4.93 million to 5.3 million. October’s figure was revised from a previously reported 5.26 million.
Compared with a year earlier, purchases increased 2.1% in November on an adjusted basis, the report showed.
The median price of an existing home increased 5% from a year earlier to $205,300 last month.
