Existing home sales rose nationwide in November from October levels but were still down compared with the tax credit-boosted sales in November 2009.
Sales of single-family, townhomes, condos and co-ops were up 5.6% last month to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, according to figures released Wednesday by the National Association of Realtors.
Home sales are down 27.9% from last November, which recorded a peak of 6.49 million units, as the first deadline for the first-time homebuyer credit loomed.
Lawrence Yun, chief economist for the Realtors association, said he’s encouraged by the sales gains last month. That, paired with other positive trends such as steady job creation, still-low mortgage interest rates and affordable home prices, points to a market recovery, Yun said.
The median existing home price was $170,600, up 0.4% from November 2009. Distressed homes accounted for 33% of sales last month.
Housing inventory dropped 4% to 3.71 million existing homes for sale or a 9.5-month supply at the current sales pace. A normal market has a three- to six-month supply of homes.
Tight credit has meant more cash sales. In November, all-cash deals were at 31% of total sales. That is up from 29% in October and 19% in November 2009.
Contact GRETA GUEST: 313-223-4192 or gguest@freepress.com