
The REAL Trends Housing Market Report for November 2014 shows that housing sales decreased -0.4 percent from the same month a year ago. The annual rate of new and existing home sales for November 2014 was 5.253 million units down from a rate of 5.272 million in November 2013.
Housing prices rose an average of 5.6 percent from November 2013, continuing the slow decline of year over year price increases in housing sales. Price increases have now settled to a mid-single–digit growth rate for the past five months.
“The November housing data indicates that, while housing sales slipped again, the average price continues to move upward. There are few factors to explain why the annualized sales rate slipped from the prior month and from the prior year,” says Steve Murray, editor of the REAL Trends Housing Market Report. “Mortgage rates continue to be attractive and both employment and incomes are up from a year ago. The lack of affordability and the tightness of mortgage credit continues to be a drag on an otherwise healthy housing market,” Murray added.
Housing unit sales for November 2014 increased 1.9 percent in the South, the best performance in all regions. Northeast sales were down 1.8 percent, the Midwest region saw unit sales decreases of 5.2 percent, and the Western region saw unit sales increase by 1.5 percent.
The average price of homes sold in November 2014 in the South region increased by 7.4 percent, the best result in the nation. The Midwestern region saw average prices increase 7.3 percent, average prices in the Western region were up 4.8 percent, and the Northeast had an average price increase of 1.8 percent.
“It seems that the market has once again reached a level that will not improve dramatically without changes in underwriting requirements,” says Murray. “While the recent announcements of changes to these requirements are positive for the long term, they will not affect the short-term level of housing sales.”
REAL Trends November/October Housing Market Report
(Versus same month a year ago)
November 2014 November 2014 October 2014 October 2014
Closed Sales Average Price Closed Sales Average Price
National -0.4% +5.6% +9.3% +2.4%
Regional Report
Northeast -1.8% +1.8% +9.6% +1.0%
South +1.9% +7.4% +13.8% +2.0%
Midwest -5.2% +7.3% +6.6% +4.9%
West +1.5% +4.8% +4.5% +4.4%
This article appeared in REAL Trends Newsletter and is being reprinted with permission of REAL Trends, Copyright 2014.