Existing-home sales continued to recover last month following a rise in October, with the level of sales activity suggesting a turn in the market, according to the NATIONAL ASSOCIATION OF REALTORS®.
Total existing-home sales — including single-family, townhomes, condominiums, and co-ops — rose 0.6 percent to a seasonally adjusted annual rate of 6.28 million units in November, up from 6.24 million the previous month. However, that still falls 10.7 percent below the 7.03 million-unit pace in November 2005.
“As the housing market recovers from its correction, existing-home sales should be rising gradually during 2007," says David Lereah, NAR's chief economist. "It looks like we may have reached the low point for the current cycle in September. We’ve entered a more sustainable period of home sales now, and we expect greater support for prices over time as inventory levels are eventually drawn down.”
Total housing inventory levels fell 1 percent at the end of November to 3.82 million existing homes available for sale, which represents a 7.3-month supply at the current sales pace.