Home Buying Takes a Chilly Turn in November

High Prices and Low Inventory Persist

Buying a home in November was tough. Prices stayed high, mortgage rates didn't budge much, and there were fewer homes on the market.

• Sales of used homes only went up a tiny bit from October.
• Sales were even lower than in November last year.
• About 4.13 million homes were sold in a year, but that's not great news.

Homes Stayed on the Market Longer

• Homes sat for 36 days instead of 32 days last November.
• First-time buyers made up only 30% of sales, less than usual.
• Investors jumped in more, making up 18% of sales, up from 13% last year.

Supply Dropped, Demand Remained High

• The number of homes for sale dropped to 1.43 million at the end of November.
• That's down from October but still up from last year.
• At this pace, it would take 4.2 months to sell all those homes.
• Experts say a balanced market would have a six-month supply.

Why Aren't More Homes Hitting the Market?

• Homeowners aren't in a hurry to sell.
• They're sitting pretty with high home values and low distressed property sales.
• Sellers are pulling their homes off the market more than usual as winter approaches.

Home Prices Keep Climbing

• The median price of a home sold in November was $409,200.
• That's up from last year and the highest ever for November.
• Cheaper homes (priced between $100,000 and $250,000) saw fewer sales.
• Luxury homes (over $1 million) did better.

The Bottom Line

• Wages are going up, which helps with affordability.
• But if the supply of homes doesn't catch up with demand, things could get tougher.
• Buyers might have to wait longer and pay more.