Home sales ticked up last month even as prices climbed

Home sales inched slightly higher in November even as prices continued to climb and buyers paid mortgage rates that were at their highest levels of the year, according to a monthly report released Wednesday by the National Association of Realtors.

Home sales inched slightly higher in November even as prices continued to climb and buyers paid mortgage rates that were at their highest levels of the year, according to a monthly report released Wednesday by the National Association of Realtors. But sales were still weak, even though closed deals of existing homes — which include single-family homes, townhomes, condominiums and co-ops — beat expectations. Sales of existing homes rose 0.8% in November to a seasonally adjusted annualized rate of 3.82 million units, finishing a five-month slide. Compared to a year ago, when sales were at a 4.12 million pace, sales were down 7.3%. The November figures are reflective of activity in October before the recent decline in mortgage rates, said Lawrence Yun, NAR’s chief economist, in a statement. “A marked turn can be expected as mortgage rates have plunged in recent weeks,” he said. Elevated prices, together with the average rate for a 30-year fixed rate mortgage nearing 8% in October, have created the least affordable market in several decades. The median price for existing homes sold last month was $387,600 — a record high for the month of November — which was up 4% from a year ago and marked the fifth consecutive month of year-over-year price increases.