Existing Home Sales Rise to Highest Level in Over a Year and a Half

Rhea-AI Summary

Existing home sales rose 0.7% month over month in November to 4,269,851 units (seasonally adjusted annual rate), marking the highest level since March 2023. Sales jumped 4.5% year over year, the largest annual increase since July 2021. The median home sale price increased 5.4% year over year to $430,107, while mortgage rates averaged 6.81%. Despite improved activity, new listings fell 1.6% month over month and 4.8% year over year, though active listings rose 0.5% monthly. The market showed regional variations, with Philadelphia leading price gains (19.2%) and Portland showing the highest sales growth (27.6%). Experts attribute the uptick to reduced election uncertainty and buyers adapting to elevated mortgage rates.

Positive

• Existing home sales increased 0.7% MoM and 4.5% YoY
• Median home sale price rose 5.4% YoY to $430,107
• Overall home sales (existing + new) up 2.2% MoM, highest in over two years
• Pending sales increased 0.4% MoM and 5.7% YoY
• Active listings rose 12.1% YoY

Negative

• New listings declined 1.6% MoM and 4.8% YoY
• Homes taking longer to sell - 43 days on market, slowest November since 2019
• Active listings still 18.2% below pre-pandemic levels
• Share of homes sold above list price decreased by 2.3 percentage points YoY

Insights

Market Research Analyst

The uptick in existing home sales marks a significant shift in market dynamics, with the 0.7% monthly increase reaching the highest level since March 2023. The 4.5% year-over-year jump is particularly noteworthy as the largest since July 2021. The median home price surge of 5.4% to $430,107, coupled with declining new listings, indicates persistent supply constraints driving price appreciation. The improvement in sales despite elevated mortgage rates at 6.81% suggests market adaptation to higher rates and release of pent-up demand post-election. However, extended days on market (43 days) and only 26.5% of homes selling above list price reflect continued market challenges.

Financial Analyst

For Redfin (RDFN), this report presents mixed implications. While increased transaction volume typically benefits brokerages, the 4.8% year-over-year decline in new listings could constrain revenue growth potential. The regional variations are significant, with some markets showing robust growth while others, particularly in Florida, experiencing notable declines in pending sales. The 12.1% increase in active listings suggests potential future transaction opportunities, but the slower pace of sales indicates persistent market friction. The pre-pandemic comparison showing listings still down 18.2% highlights structural market challenges that continue to impact the brokerage industry.

Redfin reports homebuying activity picked up in November as election uncertainty dissipated and buyers grew more accustomed to elevated mortgage rates

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Existing home sales rose 0.7% month over month in November to a seasonally adjusted annual rate of 4,269,85—the highest level since March 2023. They jumped 4.5% year over year—the largest annual increase since July 2021, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

A seasonally adjusted annual rate is not a measurement of actual total sales for the year, but rather, the pace of sales at a given time. A seasonally adjusted annual rate of 4,269,851 in November means that existing home sales would end the year at that level if homes were sold at the November pace for each month of 2024. Redfin’s measure of existing home sales has them coming in at around 4.1 million for the full year of 2024.

“Homebuying activity picked up steam in recent months as election uncertainty dissipated and house hunters realized that waiting probably isn’t going to get them a significantly lower mortgage rate anytime soon,” said Redfin Senior Economist Elijah de la Campa. “Since 2024 was a slow year for housing, existing home sales for the full year will still likely come in roughly the same as 2023, which was the weakest showing for sales since 1995. But we expect sales to tick up in 2025.”

The average interest rate on a 30-year mortgage rose to 6.81% last month, the highest level since July, but that’s still below the 7.44% level of November 2023. Mortgage rates hit the highest level in over two decades last fall, putting a damper on sales—another reason sales this past month posted a sizable year-over-year gain.

Overall home sales, including both existing and new homes, climbed 2.2% month over month in November to the highest level in over two years on a seasonally adjusted basis. They were up 7% year over year, the biggest annual increase since June 2021.

Pending sales also inched up, rising 0.4% month over month to the highest level since February 2023 on a seasonally adjusted basis, and climbing 5.7% year over year.

“The market was stagnant in the months leading up to the election, but within 48 hours of the results being announced, I was getting more home-tour requests,” said Rafael Corrales, a Redfin Premier real estate agent in Miami. “We definitely saw an uptick in demand on the buyside, but less so with listings.”

Home Prices Posted Biggest Gain in Seven Months as Supply Remained Constrained

The median home sale price increased 5.4% year over year to $430,107 in November, the biggest annual gain since April.

Prices continue to rise because there’s still a shortage of homes for sale. New listings fell 1.6% month over month on a seasonally adjusted basis and dropped 4.8% year over year.

While new listings slowed in November, active listings—a measure of all homes on the market—continued to rise. Active listings climbed 0.5% month over month to the highest level on a seasonally adjusted basis since July 2020, and increased 12.1% year over year. One reason active listings are rising is that some homes are taking a long time to sell, causing stale supply to pile up. The typical home that went under contract in November was on the market for 43 days—the slowest November pace since 2019.

While active listings rose last month, they were still 18.2% below pre-pandemic (November 2019) levels. New listings were 13.8% below pre-pandemic levels.

November 2024 Housing Market Highlights: United States
	November 2024	Month-over-month change	Year-over-year change
Median sale price	$430,107	-0.9%	5.4%
Existing home sales, seasonally adjusted annual rate	4,269,851	0.7%	4.5%
Pending home sales, seasonally adjusted	495,299	0.4%	5.7%
Homes sold, seasonally adjusted	441,032	2.2%	7%
New listings, seasonally adjusted	525,178	-1.6%	-4.8%
Total homes for sale, seasonally adjusted (active listings)	1,736,884	0.5%	12.1%
Months of supply	3.1	0.1	0.1
Median days on market	43	2	6
Share of homes sold above final list price	26.5%	-1.3 ppts	-2.3 ppts
Average sale-to-final-list-price ratio	98.8%	-0.2 ppts	-0.2 ppts
Monthly average 30-year fixed mortgage rate	6.81%	0.38 ppts	-0.63 ppts

Metro-Level Highlights: November 2024

• Prices: Median sale prices rose most from a year earlier in Philadelphia (19.2%), Newark, NJ (14.4%) and St. Louis (11.8%). They fell in just two metros: Tampa, FL (-1.3%) and Dallas (-0.6%).
• Pending sales: Pending sales rose most in Seattle (15.3%), Jacksonville, FL (14.9%) and Nashville (14.8%). They fell most in Miami (-12.5%), West Palm Beach, FL (-6.8%) and Fort Lauderdale, FL (-6%).
• Closed home sales: Home sales rose most in Portland, OR (27.6%), San Jose, CA (26.2%) and Seattle (19.5%). They fell most in West Palm Beach (-18.3%), Fort Lauderdale (-14.2%) and Philadelphia (-10.6%).
• New listings: New listings rose most in San Francisco (8.5%), Washington, D.C. (5.3%) and Fort Lauderdale (4.5%). They fell most in Austin, TX (-24.5%), Portland (-20.3%) and Atlanta (-18.5%).
• Active listings: Active listings rose most in Cincinnati (36.3%), Fort Lauderdale (34.3%) and San Diego (28.9%). They fell most in Newark (-2.5%), San Francisco (-1.8%) and Detroit (-1.6%).
• Sold above list price: In Newark, 64.8% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next came San Jose (58.6%) and Nassau County, NY (54.1%). The lowest shares were in West Palm Beach (6.7%), Fort Lauderdale (8.1%) and Miami (8.1%).

To view the full report, including charts, please visit: https://www.redfin.com/news/existing-home-sales-rise-november.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218545573/en/

Contact Redfin

Redfin Journalist Services:

Ally Forsell, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What was RDFN's reported existing home sales growth in November 2024?

Redfin reported existing home sales grew 0.7% month over month and 4.5% year over year in November 2024, reaching a seasonally adjusted annual rate of 4,269,851 units.

How much did home prices increase according to RDFN's November 2024 report?

The median home sale price increased 5.4% year over year to $430,107 in November 2024, marking the biggest annual gain since April.

What was the average 30-year mortgage rate in RDFN's November 2024 report?

The average 30-year mortgage rate was 6.81% in November 2024, up from the previous month but below the 7.44% level of November 2023.

Which US metro area showed the highest price growth in RDFN's November 2024 report?

Philadelphia showed the highest median sale price growth at 19.2% year over year, followed by Newark, NJ at 14.4%.

What was the impact on new listings in RDFN's November 2024 housing report?

New listings fell 1.6% month over month on a seasonally adjusted basis and dropped 4.8% year over year in November 2024.