In what reflects the significant amount of pent-up demand in today’s housing market, existing-home sales surged in November to their strongest pace since December 2006. Good news was also found in November’s pending sales data.
Whether it’s been weakening affordability, low supply or hurricanes, sales have been somewhat sluggish since the summer. That changed last month.
Looking at the data from the Realtors Confidence Index, it’s clear most of the jump in closings came from trade-up buyers with large down payments and those with cash on hand. All-cash and investor sales were both up, while first-time buyers made up only 29 percent of the market (32 percent in November 2016).
While November’s sales jump is great news heading into 2018, NAR Chief Economist Lawrence Yun reiterated during this morning’s press conference that supply is still way too low. Sales to first-time buyers will not improve meaningfully unless there’s a significant boost in new and existing listings next year.
We’ll find out soon…