U.S. existing home sales rise sequentially in November

Existing home sales in the U.S. grew in the month of November on a sequential basis. Sales were up 5.6 percent, rising to 5.81 million. This is above consensus expectations of a modest growth to 5.50 million. The rise in existing home sales was mainly driven by an outsized rise in sales of multi-family structures, which rose 14.3 percent. Sales of single-family structures recorded another month of strong growth, which rose 4.5 percent. In the meantime, the data for October was revised up a bit, with total sales at 5.50 million. Region wise, sales were up in all regions except the West.

Looking at other details in the report, total months of supply dropped to 3.4, lowest in the history of the series dating back to 1999. This is consistent with the fall in inventories, which dropped lower to 1.72 million on a seasonally adjusted basis, the lowest level since the inception of the series. In the meantime, median home prices rose higher.

Today’s report was stronger than expected. Moreover, along with upward revision to October’s data, it suggests higher brokers’ commissions in the fourth quarter than was factored in, stimulating residential investment tracking estimate to 7.9 percent, noted Barclays in a research report.

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