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Real estate industry

Sales of Pre-Owned Homes Fall Slightly in November Amid Declining Consumer Confidence

Strategic Insights

— 2 min read

Consumer confidence in the US economy has weakened in the wake of the protracted federal budget, leading to a slight decline in sales of pre-owned homes in November, according to the National Association of Realtors. Although the resale pace was 9.5% higher than in November 1994, the seasonally adjusted annual sales rate dropped to 4.04 million existing single-family homes nationwide last month. This decrease is attributed to the government shutdown and the holiday spending season, which may have deterred consumers from entering the housing market.

Key Takeaways:

  • The seasonally adjusted annual sales rate of existing single-family homes nationwide fell to 4.04 million units in November, down 1.7% from the October rate of 4.11 million units.
  • The resale pace was 9.5% above that for November 1994, with the national median existing-home price increasing to $114,200 in November, up 5.1% from the November 1994 price of $108,700.
  • The Northeast was the only region to post a month-to-month resale increase, with the rate of existing home sales reaching 640,000 units in November, a 3.2% increase from October.
  • The Midwest recorded a resale rate of 1.06 million units, down 0.9% from October, but up 7.1% from November 1994.
  • The West saw a November rate of 880,000 units, down 1.1% from October, but up 8.6% from November 1994.
  • The South posted a resale rate of 1.46 million units for November, down 4.6% from October, but up 9.0% from a year ago.
  • NAR predicts that sales of existing single-family homes will total 3.74 million units for 1995, a decline of 1.2% from the total for 1994.
  • The National Association of Realtors is predicting a 5.1-month supply of homes available for sale nationwide, with the current national median price of $114,200.

Statistics:

  • Seasonally adjusted annual sales rate of existing single-family homes nationwide: 4.04 million units in November, down 1.7% from the October rate of 4.11 million units.
  • Resale pace in November 1994: 10% lower than in November 1994.
  • National median existing-home price in November: $114,200, up 5.1% from the November 1994 price of $108,700.
  • Rate of existing home sales in the Northeast: 640,000 units in November, up 3.2% from October.
  • Rate of existing home sales in the Midwest: 1.06 million units, down 0.9% from October, but up 7.1% from November 1994.
  • Rate of existing home sales in the West: 880,000 units, down 1.1% from October, but up 8.6% from November 1994.
  • Rate of existing home sales in the South: 1.46 million units, down 4.6% from October, but up 9.0% from a year ago.

Sources:

  • National Association of Realtors
  • PR Newswire
  • The Voice for Real Estate

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