America: House Sales Increase in November

House sales rose slightly in November, indicating a stabilisation in housing in the wake of mortgage disruptions earlier this year, according to the National Association of Realtors. Total house sales – including single-family, townhouses, condominiums and co-ops – rose 0.4 percent to an annual rate of 5.00 million units in November from 4.98 million in October, but still 20.0 percent below the 6.25 million-unit level in November 2006.

Lawrence Yun, NAR chief economist, said the market appeared to be stabilising. “Near term, existing-home sales should continue to hover in a narrow range, just as they have since September, and that’s good news because it’ll be a further sign that the housing market is stabilising,” he said. “Mortgage interest rates are near historic lows and the most current data shows decelerating price declines, along with a modest reduction in the number of homes on the market.”

The American median house price for all housing types was $210,200 (£107,200) in November, down 3.3 percent from November 2006 when the median was $217,300 (£110,900), but there remains a downward drag on the national median as the mix of closed sales has shifted away from expensive markets.

“Just like the weather, there are large local variations in house prices,” Yun said. A quarterly examination of price performance on a metropolitan basis shows nearly two-thirds of metro areas are showing price increases. Among the many metros experiencing healthy local price gains are Farmington, New Mexico; Reading, Pennsylvania; Columbia, South Carolina; and Fargo, North Dakota.

Single-family home sales rose 0.7 percent. The median existing single-family house price was $208,700 (£106,500) in November, down 3.7 percent from a year earlier.

Existing condominium and co-op sales slipped 1.6 percent. The median existing condo price was $221,100 (£112,800), down 0.7 percent from in November 2006.

Regionally, house sales in the West increased 10.3 percent in November to a level of 960,000, but are 25.0 percent below a year ago. The median price in the West was $325,800 (£166,224), which is 6.8 percent lower than November 2006.

In the Midwest, house sales were unchanged at an annual rate of 1.18 million in November, but are 16.9 percent below November 2006. The median price in the Midwest was $163,000 (£83,200), down 0.5 percent from a year ago.

House sales in the South declined 2.0 percent to an annual rate of 1.99 million in November, and are 19.4 percent below a year ago. The median price in the South was $174,200 (£88,900), which is 2.5 percent below November 2006.

House sales in the Northeast fell 3.3 percent to an annual pace of 870,000 in November, and are 19.4 percent below November 2006. The median price in the Northeast was $258,300 (£131,800), down 3.2 percent from a year ago.