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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 72 January 2025 J O U R N A L housing, jobs, and lifestyle remain powerful motivators. From pursuing homeownership to leveraging remote work for job opportunities, relocation decisions highlight how Americans are adapting to shifting economic and personal priorities. EXISTING- HOME SALES EXPERIENCE SEASONAL CLIMB T he National Association of Realtors (NAR) reports that existing-home sales increased in November. Three major U.S. regions saw growth in sales, but the West saw no change. All four regions saw an increase in sales year over year. The seasonally adjusted annual rate of existing-home sales, which includes completed transactions of single-family homes, townhomes, condominiums, and cooperatives, increased 4.8% from October to 4.15 million in November. Sales increased 6.1% year over year (from 3.91 million in November 2023). "Home sales momentum is building," said Lawrence Yun, Chief Economist at NAR. "More buyers have entered the market as the economy continues to add jobs, housing invento- ry grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%." At the end of November, there were 1.33 million units in total housing inventory, which was 2.9% less than in October but 17.7% more than a year earlier (1.13 million). At the current sales pace, unsold inventory is at a 3.8-month supply, which is higher than the 3.5-month supply in November 2023 but lower than the 4.2-month supply in October. Lisa Sturtevant, Chief Economist for Bright MLS, revealed her thoughts on the Existing Home Sales report: "The National Association of Realtors reported this morning that existing home sales were at a seasonally adjusted rate of 4.15 million in Novem- ber, the fastest pace of sales activity since March. Sales rose 6.8% from a year ago and were 4.8% higher than October. Historically, there is a drop-off in the number of closed sales between October and November. But this year, buyers jumped on mortgage rates that dipped in early October, bringing more contracts which closed in November. Assuming December sales are general- ly good, 2024 U.S. existing home sales should be above 2023 levels—though still only slightly." All property types combined had a median existing-home price of $406,100 in November, a 4.7% increase from $387,800 a year earlier. Price hikes were reported in all four U.S. regions. "Existing homeowners are capital- izing on the collective $15 trillion rise in housing equity over the past four years to look for homes better suited to their changing life circumstances," Yun said. Key Findings of the REALTORS Confidence Index: • Properties were on the market for an average of 32 days in November, compared to 29 days in October and 25 days in November 2023. • In November, 30% of sales were made by first-time customers, which is an increase from 27% in October but a decrease from 31% in November 2023. The annual percentage of first-time buyers was 24%, the lowest ever recorded, "Home sales momentum is building. More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%." —Lawrence Yun, Chief Economist, NAR