As expected, the November home sales increased by 1.9% on top of the results for October existing home sales. The sustained demand is attributed to several factors: a strong job market, continued shortages of existing homes for sale, lower mortgage rates, and the concern that inflation will impact the price trajectory in 2022 significantly. 
The sales of previously owned homes in November rose to 6.46 million units, according to the National Association of Realtors’ seasonally adjusted count.
Regional Sales Month-to-Month
Northeast sales were unchanged
Midwest sales increased 0.7%
South sales increased 2.9%
West sales increased 2.3%
These sales reflect home closings, so contracts that were likely signed in September and October.
The number of homes for sale nationally in November fell by 13% to 1.11 million homes year over year. The current inventory is estimated to represent a 2.1-month supply.
In addition, the National Association of Realtors reported that the median price of an existing home sold in November was $353,900. This sustained the double-digit demand, pushing it to a 13.9% price jump from November 2020. The inventory shortage is clearly constraining the market, which would increase the number of purchases.
The market is also reflecting the introduction of institutional investors such as Blackrock, which have aggressively entered such markets as Atlanta, Georgia, buying up many middle-priced homes with the intent of renting them out.
First-time buyers are obviously being shut-out by the institutions and home flippers, as is reflected in the decrease in homes priced between $100,000 and $250,000, which fell 19%, from 2020.
According to the National Association of Realtors, the share of sales to first-time buyers was just 26%, down from 32% in November of 2020, while the share of sales to investors was 15%, up from 14% reported in 2020.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.