New home sales rose modestly in the United States in October as prices remained elevated
New home sales rose modestly in the United States in October as prices remained elevated

The National Association of Realtors (NAR) reported on Wednesday that November marked the 117th straight month of year-over-year increases in housing prices across the nation, the longest-running streak on record.

Lawrence Yun, the NAR’s chief economist, cites “near record-low supply levels” and “labor shortages” as hindrances to the home sales market, which has seen prices rise. The current months-long streak of year-over-year home price increases marks the longest-running streak on record.

Existing home sales rose 2% in November from October to a seasonally adjusted annual rate of 6.5 million. Compared to a year ago, the unsold homes inventory decreased by 13.3% to 1.1 million. According to NAR, that decrease is equivalent to approximately two months of sales.

NAR also recorded a median existing-home sales price rise of 14% for November, year over year, to $353,900. Of the four regions NAR looks at — West, Midwest, South, and Northeast — only the Northeast remained steady. The rest of the regions saw an increase in existing home sales.

Overall, 83% of home sales in November were on the market for less than a month.

New US home sales boomed in 2020, but tightening supply, rising prices as well as the toll of Covid-19 could chill the sector, at least in early 2021

New US home sales boomed in 2020, but tightening supply, rising prices as well as the toll of Covid-19 could chill the sector, at least in early 2021 Photo: AFP / Chris DELMAS

Looking to 2022, Yun said, “mortgage rates are projected to jump in 2022, however, I don’t expect the imminent increase to be overly dramatic.”

Yun also predicts that the 30-year fixed mortgage rate will be 3.7% by 2022. The NAR’s “Real Estate Forecast Summit,” which features economists and housing experts, found that inflations would likely ease to a 4% rate in 2022.

Meanwhile, they expected a rise in home prices of 5.7%, “a moderate pace.”