The Real Deal Miami

Turning point? U.S. home sales slumped as listings surged in November, Redfin reports

Home sales nationwide fell last month at the fastest rate in 2 years while the number listed for sale rose at the fastest rate in 3 years, according to the Seattle-based brokerage
December 16, 2018 12:00PM

(Credit: iStock)

Home sales nationwide fell in November at the fastest rate in two years while the number of homes listed for sale increased at the fastest rate in three years, according to a report by Seattle-based brokerage firm Redfin.

“The tide has turned. Sellers are now competing for buyers, but they haven’t all realized it yet,” Redfin chief economist Daryl Fairweather said in prepared remarks.

“Sellers holding out for high prices are contributing to declining home sales and growing inventories,” she said. “We see few signs that buyers are likely to reward their patience.”

Home sales in November dropped 8.3 percent from November 2017 while the number of homes listed for sale last month increased year over year by 4.9 percent, Redfin reported.

Interest rates for mortgage loans were 4.9 percent last month, compared to an average of 3.9 percent from 2012 to 2017, and the higher cost of borrowing may be weighing on home sales and sale prices.

Redfin reported that the median sale price of U.S. homes sales rose to $298,800 in November, up 3.3 percent from November 2017 – the third consecutive month of annual median-price growth under 4 percent following 77 consecutive months of growth over 4 percent. []Mike Seemuth