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November Home Sales Increased Because of Hot Job Market and Possibilities of High Rates Next Year

Home sales

Sales of earlier owned homes increased in November 1.9% from 6.46 million units in October, as per the National Association of Realtors.

These sales show home closings contracts that were mostly signed in September and October.

Sales in the Northeast were not changed. In the Midwest, they increased 0.7% and in the South, they were increased 2.9% and in the West, sales rose 2.3%.

Sales increased because of strengthening jobs and due to possibilities of higher mortgage rates in the next year, as per Lawrence Yun, the NAR’s chief economist.

At the end of November, there were approximately 1.11 million homes for sale.

“New listings are coming on the market, but they are being snatched up quickly,” said Yun.

Price gains are slowing from previous yearly gains of about 20%.

George Ratiu, Senior economist at Realtor.com said, “The prospect of higher interest rates in 2022 is accelerating the decision for buyers in an otherwise slower season. However, the low number of homes for sale remains the principal challenge, stumping both existing homeowners looking for their next house and first-time buyers seeking a place to call their own.”

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