According to a recent report by the National Association of REALTORSÂ® (NAR) existing-home sales in November skyrocketed to a spree not seen in more than 10 years.
Existing-home sales totaled 5.81 million, a 5.6 percent increase from October and a 3.8 percent increase from one year prior. Inventory decreased 7.2 percent to 1.67 million, 9.7 percent below one year prior.
The increased demand is being boosted by faster economic growth in recent quarters, the booming stock market and continuous job gains. Buyers showed no signs of uncertainty with the new tax plan; however, expectations of climbing interest rates motivated buyers to purchase earlier than they might have.
Interest rates are expected to rise next year which could cause low existing-home inventory levels to persist. Buyers prospects for becoming homeowners will only improve if more lower-priced and smaller-sized homes come onto the market and the increase in home builder optimism must translate to significantly more new construction in 2018 to help ease these acute inventory shortages.