WASHINGTON — Existing homes increased 5.6% in November to a seasonally adjusted 4.68 million as the median home price increased for the first time since August, the National Association of Realtors reported Wednesday.
Sales in October were unrevised at 4.43 million.
Economists expected 4.71 million sales for the month, according to the median estimate from Thomson Reuters.
Lawrence Yun, NAR’s chief economist, said home prices will continue to decline in 2011 if sales do not reach a 5.2 million monthly sales level.
The November median sales price was $170,600, up 0.1% from October and up 0.4% from a year ago. The median price in October was revised to $170,400.
The months supply of homes available dropped to 9.5 months, below 10 months for the first time since June. The months supply in October was 10.5 months.
The current sales pace is matching the levels seen prior to the expiration of the homebuyer tax credit. Yun said the sales level needs to match with the levels seen in 2000 – about 5.2 million. This would be “more sustainable,” Yun said.
