November Existing Home Sales Rise

The national median existing-home price for all housing types was $180,600 in November, up 10.1 percent from November 2011. This is the ninth consecutive monthly year-over-year price gain, which last occurred from September 2005 to May 2006.

Sales of existing homes continued to improve in November, as low inventories pushed home prices upward.

Total existing home sales rose 5.9 percent to a seasonally adjusted annual rate of 5.04 million in November, from a downwardly revised 4.76 million in October, and are 14.5 percent higher than the 4.40 million-unit pace in November 2011, according to the National Association of Realtors. Sales are at the highest level since November 2009, when the annual pace reached 5.44 million.

"Momentum continues to build in the housing market from growing jobs and a bursting out of household formation," said Lawrence Yun, NAR chief economist. " Areas impacted by Hurricane Sandy show storm-related disruptions, but overall activity in the Northeast is up, offset by gains in unaffected areas."

Foreclosures sold for an average discount of 20 percent below market value in November, while short sales were discounted 16 percent.

"The market share of distressed property sales will fall into the teens next year, based on a diminishing number of seriously delinquent mortgages," Yun added.

Total housing inventory at the end of November fell 3.8 percent to 2.03 million existing homes available for sale, which represents a 4.8-month supply 4 at the current sales pace; it was 5.3 months in October, and is the lowest housing supply since September of 2005, when it was 4.6 months.

Listed inventory is 22.5 percent below a year ago when there was a 7.1-month supply. Raw unsold inventory is now at the lowest level since December 2001 when there were 1.89 million homes on the market.