MNI BRIEF: US Home Sales End 5-Month Slide; +0.8% To 3.82M

U.S. sales of existing homes grew 0.8% to a seasonally adjusted annual rate of 3.82 million in November as mortgage rates plunged, the National Association of Realtors said Wednesday, above market expectations and ending a five-month sales drop. Sales are still down 7.3% from one year ago.

The national median home price was up 4.0% from one year ago to USD387,600, the fifth consecutive month of year-over-year price increases. “Home prices keep marching higher,” NAR chief economist Lawrence Yun said. “Only a dramatic rise in supply will dampen price appreciation.” Yun told reporters he expects sales to have bottomed and mortgage rates to continue to fall. (See: MNI INTERVIEW: Resilient Housing To Rebound As Rates Fall)

The inventory of unsold existing homes slid 1.7% from the previous month to 1.13 million at the end of November, or the equivalent of 3.5 months’ supply at the current monthly sales pace.