Sales of existing US homes in November increase 5.6% to 5.81 million units in November, compared with an upwardly revised 5.5 million units in October, according to data from the National Association of Realtors. The sales in November reach their highest level in nearly 11 years since December 2006.
Economists had expected home sales to increase 0.9% to a 5.52 million-unit rate in November from the number in October, and the results in November beat the estimates.
According to National Association of Realtors, sales in the south rose 8.3% in November. The sales in the south accounts for around half of the existing home sales market. Additionally, sales in the Northeast increased 6.7% and sales in the Midwest climbed 8.4%. However, sales in the West dropped 2.3% partly due to a strong increase in house price.
“Home prices continue to march higher at a very solid pace,” Lawrence Yun, the chief economist of NAR, said at a press briefing. He also said that the data “showing exceptionally tight inventory conditions.”
In addition, first-time buyers consist of 29% of all sales, compared with 32% in October last year, according to Yun.
Existing home sales account for 90% of the market and are calculated when a contract closes. New-home sales account for only around 10% and are tabulated when contracts get signed.