Home Sales Jump in November, but Investors Pause

November saw a surprising boost in home sales, with a 4. 8% increase compared to October. This puts sales at an impressive 4. 15 million units annually, according to the National Association of Realtors. The best part? This is a 6. 1% rise from last year, making it the third-highest pace of the year. This good news comes from contracts signed in September and October. Mortgage rates hit an 18-month low in September, but quickly rose in October. Lawrence Yun, the chief economist for the NAR, sees this as a positive sign. More buyers are entering the market as the economy adds jobs and housing inventory grows.

The number of homes for sale at the end of October reached 1. 33 million units, a 17. 7% jump from last year. This means a 3. 8-month supply at the current rate, still below the balanced 6-month supply. Prices felt the heat, rising 4. 7% year-over-year, with the strongest gains in the Northeast and Midwest. First-time buyers made up 30% of sales, a slight increase, while investors backed off, making up just 13% of sales. Yun wonders if investor cautiousness signals a belief that home prices have peaked or if it's due to leveling rents. High-end homes are where the action is, with sales over $1 million jumping 24. 5%, while sales under $100, 000 dropped 24. 1%. Mortgage rates are higher today, with the average rate on a 30-year fixed loan rising after the latest Federal Reserve meeting.

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