US existing home sales jump past forecasts in November
Existing home sales in the States jumped past forecasts last month, rising by the most in nearly 11 years amid strong gains in all regions outside of the West.
Total existing home sales increased by 5.6% month-on-month to reach a a seasonally adjusted pace of 5.81m (consensus: 5.50m), according to the National Association of Realtors.
That followed a slight upwards revision to figures for the month prior, from 5.48m to 5.50m.
"Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end," said Lawrence Yum, the NAR's chief economist.
"As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better," he added.
Prices were also higher year-on-year, with the median cost of a home rising for a 69th consecutive month to hit $248,00, which was 5.8% more than in the same month of 2016.
The stock of homes available for sale also fell sharply, by 7.2% on the month to 1.67m or the equivalent of a 3.4 month supply, down from 4.0 months in October.
On a more cautious note, Yun also said: "The anticipated rise in mortgage rates next year could further cut into affordability if these staggeringly low supply levels persist. Price appreciation is too fast in a lot of markets right now. The increase in homebuilder optimism must translate to significantly more new construction in 2018 to help ease these acute inventory shortages."