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73 January 2025 J O U R N A L January 2025 » according to NAR's 2024 Profile of Home Buyers and Sellers, which was published in November 2024. • In November, 25% of transactions were cash sales, compared to 27% in October 2024 and November 2023. • In November, 13% of properties were bought by individual investors or second-home purchasers, who account for a large portion of cash sales. This is a decrease from 17% in October and 18% in November 2023. • Foreclosures and short sales, or distressed sales, accounted for 2% of sales in November, essentially staying the same from the previous month and year. • As of December 12, the 30-year fixed-rate mortgage averaged 6.6%, according to Freddie Mac. That is a decrease from 6.95% a year ago and 6.69% a week ago. "Existing home sales picked up in November to 4.15 million, notching a second consecutive year-over-year gain after a streak of declines stretching back to August 2021," said Danielle Hale, Chief Economist at Realtor.com. "This is the first time in 6 months that home sales exceeded the 4 million mark. Home sales rose 6.1% from last year and were also 4.8% higher than in October. Homes with November closings generally went under contract in September and October, when shop- pers benefited from an uptick in newly listed for-sale homes. Increased buying power, as mortgage rates declined to a 2-year low in September, brought shoppers to the market, and the late September surge in rates created a sense of urgency that likely contributed to the uptick." Single-Family and Condo/Co-Op Sales Progress In November, sales of single-family homes increased 5.0% to a seasonally adjusted annual pace of 3.76 million, which was 7.4% higher than the pre- vious year. In November of 2023, the median price of an existing single-fami- ly home was $410,900, a 4.8% increase. November saw a 2.6% increase in existing condominium and cooperative sales to a seasonally adjusted annual pace of 390,000 units, which was 4.9% lower than the 410,000 units sold a year earlier. In November, the median price of an existing condo was $359,800, which was 2.8% more than the previous year ($350,100). "The main constraints in the housing market have been inventory and affordability," Sturtevant said. "In November, the median sold price was up again, increasing by 4.7% compared to a year ago. Home prices are now about 50% higher than they were five years ago. It has been a difficult market for would-be home buyers. Some of the obstacles in the market will ease somewhat in 2025 as listing activity increases and mortgage rates come down slightly. Pent-up demand that has been building over the past two years will be unleashed and 2025 sales should outpace 2024. Buyers should still expect to encounter a competitive market in the year ahead." In the Northeast, existing-home sales in November increased 6.3% from November 2023 and 8.5% from October to an annual rate of 510,000. In the Northeast, the median price increased 9.9% from the previous year to $475,500. The median home sales price likely moved higher compared to one year ago, climbing 4.7% to $406,100, notching an 8th straight month above $400,000. "We could see home sales falter again in the months ahead as Fall's higher rates are felt," Hale said, "but mortgage rates have already turned the corner again, dropping back to 6.6% as of mid-December. While Fed policy and inf lation trends may lead to upticks in interest rates from time to time, as the reaction to the December Fed meet- ing and updated Fed projections shows, in the medium run, more mortgage rate declines are expected." In November, existing-home sales in the Midwest increased 5.3% from the previous year to an annual rate of 1 million. In the Midwest, the median price increased 7.3% from November 2023 to $302,000. In the South, existing-home sales increased 3.3% from the previous year to an annual rate of 1.87 million in No- vember, up 5.6% from October. In the South, the median price increased 2.8% from the previous year to $361,300. In November, existing-home sales in the West remained steady at an an- nual rate of 770,000, up 14.9% from the previous year. In the West, the median price increased 4.0% from November 2023 to $628,200. "This outlook already boosted buyer sentiment and is likely to propel modest home sales growth in the year ahead according to the Realtor.com 2025 Housing Forecast," Hale said. "These gains won't be distributed evenly across markets. Recent sales momentum, relatively lower costs, more plentiful inventory in areas where builders can build, and more younger households are commonalities across markets in the South and West that are expected to see outsized home sales and price growth according to the Realtor.com 2025 Top Housing Markets report." SURVEY FINDS U.S. RENTERS LACK A 'SENSE OF BELONGING' A ccording to a recent Redfin survey, less than half (46.7%) of American renters and over two-thirds (63.6%) of homeowners feel a sense of belonging in their community. Compared to 58.5% of homeowners, only 38.9% of renters believe they share characteristics with their neighbors. Additionally, renters are more like- ly than homeowners to try to avoid engaging with their neighbors; 41.6% of renters do so compared to 33.1% of homeowners.