Home sales reach highest level since beginning of recession

Rising mortgage rates, prices might put a damper on things

TRD New York /
Dec.December 21, 2016 02:45 PM

Home sales in November jumped to the highest levels seen since the beginning of the recession, but the flurry of activity could be tempered by rising mortgage rates and sale prices.

Sales of previously-owned homes in the U.S. rose 15.4 percent year-over-year last month to an annual rate of 5.6 million, the highest sales rate seen since 2007, according to a study by the National Association of Realtors (NAR).

At the same time, borrowing rates have soared since the Nov. 8 election. For 30-year fixed-rate mortgages, the average rate was 3.77 percent in November — up from 3.47 the previous month, the Wall Street Journal reported. The average rate has continued to climb in December, reaching 4.16 percent last week.

“We do expect some tapering off of home sales in 2017,” Lawrence Yun, the NAR’s chief economist, told the Journal.

Sales prices are also increasing as supply tightens. In November, the median sales price was $234,900, which was a 6.8 percent jump from the same time last year. [WSJ] — Kathryn Brenzel


Related Articles

arrow_forward_ios
Homeowners in redlined areas gained less equity over the past 40 years, exacerbating the wealth gap for blacks (iStock)

Homeowners gained far less equity in formerly redlined areas: study

Homeowners gained far less equity in formerly redlined areas: study
Long live NAR: Agents won’t defy powerful trade group in pocket listings spat

Long live NAR: Agents won’t defy powerful trade group in pocket listings spat

Long live NAR: Agents won’t defy powerful trade group in pocket listings spat
With home sellers also staying on the sidelines amid the public-health crisis, the market is now giving rise to bidding wars. (iStock)

The return of the bidding war

The return of the bidding war
CAP: NAR President Vince Malta and TAN founder David Faudman (Credit: YouTube, NAR, iStock)

Pushback over going “clear”: NAR sued for pocket listing ban

Pushback over going “clear”: NAR sued for pocket listing ban
220 Central Park South and a view of Queens (Credit: Jim.henderson and Dquai via Wikipedia)

TRD Insights: Every resi deal in NYC last week

TRD Insights: Every resi deal in NYC last week
NAR predicts home sales to drop 10% in 2020

NAR predicts home sales to drop 10% in 2020

NAR predicts home sales to drop 10% in 2020
New York City saw over $441 million in residential sales during the third week of April

TRD Insights: These were all the resi deals in NYC last week

TRD Insights: These were all the resi deals in NYC last week
Though social distancing measures are hampering deal activity, more than $600 million in property trades hit records last week, according to the latest TRD Insights analysis 

NYC saw $600M+ in sales transactions last week: TRD Insights

NYC saw $600M+ in sales transactions last week: TRD Insights
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...