Flight from the Cities: Supply of Existing Homes for Sale Hits Record Low

Sales of previously owned U.S. homes fell in November as supply fell to a record low and prices continued to climb.

Existing-home sales fell 2.5 percent in November from October to a seasonally adjusted annual rate of 6.69 million, the National Association of Realtors said Tuesday. But even with the decline, sales are up a massive 25.8 percent compared with a year ago.

This was the highest sales rate for November since 2005.

The push for big-city residents to buy homes away from dense urban centers has created a severe shortage of houses on the market. Total housing inventory declined from the prior month and one year ago to 1.28 million, enough to last 2.3 months at the current sales pace – both record-low figures. That represents a 22 percent decline compared with a year ago.

“Housing affordability, which had greatly benefitted from falling mortgage rates, are now being challenged due to record-high home prices,” said Lawrence Yun, NAR’s chief economist. “That could place strain on some potential consumers, particularly first-time buyers.” (Read more from “Flight from the Cities: Supply of Existing Homes for Sale Hits Record Low” HERE)

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