November home sales were 8.1 percent higher than sales in November 2010, according to The RE/MAX Monthly Housing Report, a survey of housing data from 53 metropolitan areas. November is the fifth consecutive month to show a year-over-year sales increase. At the same time, the number of homes for sale, or inventory, continued to fall for the 17th straight month. November home prices were 1.4 percent higher than October, making the fifth month in 2011 that prices have risen month-to-month. However, home prices remained 4.2 percent lower than prices in November last year.
"This market is trying hard to stabilize itself with home sales significantly stronger than one year ago, even though we are entering the holiday season when sales traditionally decline," said Margaret Kelly, CEO of RE/MAX, LLC. "With sales trending higher and inventory falling, we would expect the result to be rebounding prices when we enter the stronger selling season next spring and summer."
In November, closed transactions were 5.7 percent lower than October transactions, which reflect the normal seasonal trend. However, November transactions were 8.1 percent higher than those seen in November one year ago. For the last five months, transactions have been higher than what was reported in 2010 for the same period. Of the 53 metro areas included in the survey, 41 saw increased sales over November 2010, including: New Orleans, +31.0 percent; Nashville, Tenn., +30.1 percent; Wilmington, Del., +28.0 percent; Omaha, Neb., + 25.9 percent; and Seattle, +23.4 percent.
The Median Sales Price of homes sold in November was $181,322, which is 1.4 percent higher than the price in October. In 2011, prices rose in five months and declined in six, not demonstrating a clear trend in either direction. Home prices for November were 4.2 percent lower than what was seen in November 2010. In this month’s survey of 53 metro areas, 33 showed price increases from October, while nine reported increases over November last year, including: Orlando, Fla., +8.5 percent; Miami, +6.1 percent; Detroit, Mich., +5.9 percent; Houston, +2.6 percent; and Denver, +2.3 percent.
For the 17th straight month, the November inventory of homes-for-sale fell. The average inventory of homes-for-sale in the 53 metro areas surveyed dropped 8.3 percent from October and 23.7 percent from November last year. Given the current rate of sales, and the active inventory, the resulting month’s supply is 7.8, just slightly higher than the 7.7 reported last month, but significantly lower than the 10 month supply seen in November 2010. Month’s supply is the number of months it would take to clear a market’s active inventory at the current rate of sales. A six-month supply is considered a balanced market between buyers and sellers.