US existing home sales tank in November

WRA economist Dave Clark said it was a “solid November”, with members selling about 4,800 homes at a median price of $150,000.

The slip in existing home sales follows a less severe decline in October, when the NAR reported sales fell 3.4%.

Sales fell in all major geographic regions, including the Northeast, Midwest, South and West.

Heading into the final month of 215, Wisconsin and La Crosse existing home sales remained more than 11 percent ahead of 2014 levels, while median prices are up more than 5 percent statewide, according to a report released Monday by the Wisconsin Realtors Association.

Sales of existing single-family homes reached an annual rate of 4.15 million in November, a 12.1% month-over-month decrease and a 4.6% year-over-year drop.

The median existing-home price in November was $220,300 – 6.3% higher than November 2014 and slightly up from the median price of $219,600 in October. Despite the absence of first-time buyers on the market, a recent NAR poll found that 94% of current renters, aged 34 and below, hope to own a home in the future, indicating a potential increase in first-time buyers.

But tight inventories and rising prices have curbed further gains. Relatively few properties are on the market as the economic expansion has crossed the six-year mark, with many homeowners still recovering equity lost during the Great Recession and the bursting of the housing bubble.

Yun said that the Federal Reserve’s decision this month to raise short-term interest rates are expected to push borrowing costs to around 4.5 percent by the end of next year.

The average, 30-year fixed mortgage rate has risen to 3.97 percent from 3.8 percent a year ago, according to mortgage buyer Freddie Mac.