Blip Up in Home Sales Masks a Weak Year

Sales of existing homes rose in November, notching the biggest year-over-year gain in more than three years after a bigger supply of homes for sale gave buyers more opportunities.

- NICOLE FRIEDMAN

Even so, home-buying activity remains subdued for the second straight year. Sales of previously owned homes in 2024 are on track to hit their lowest level since 1995.

Home prices are still near record highs, and while a latesummer drop in mortgage rates helped give a boost to November sales, rates have returned to higher levels. Many would-be buyers are priced out of the market.

"With mortgage rates backup to levels from last summer, sales activity is likely to wane again in coming months," said Ben Ayers, senior economist at Nationwide.

The inventory of homes for sale has been extremely low in recent years because homeowners haven't wanted to give up their low mortgage rates by selling and moving.

But a rise in supply in recent months has been a rare bright spot. Inventory is up in part because some of those homeowners are getting impatient, especially if they have had a life change like a new baby or a job relocation.

The recent uptick in supply and sales offers hope that next year could be an improvement after this long period of sluggish activity, according to Lawrence Yun, the National Association of Realtors’ chief economist.