U.S. Existing-Home Sales Tumble in November; Sales At Six-Month Low in Sign the Housing Market Continues to Underperform
WASHINGTON--Sales of previously owned homes tumbled to a six-month low in November, a sign the housing market continues to underperform despite a burst of stronger economic growth.</br></br>Existing-home sales declined 6.1% in November from a month earlier to a seasonally adjusted annual rate of 4.93 million, the National Association of Realtors said Monday. That was the lowest level since May.</br></br>November's sales were 2.1% higher than a year ago and followed a particularly strong October, when sales reached their highest level of the year.</br></br>NAR chief economist Lawrence Yun called last month's decline puzzling given strong job creation, rising consumer confidence, low interest rates and near-record stock-market levels. "Factors for improving home sales are rising," Mr. Yun said. "Today's decline, which is a large decline, is a bit puzzling, and I think it will be a one-month aberration."</br></br>He pointed to several possible reasons for the latest drop. Tightening inventory levels, exacerbated by weak home construction, have left consumers with fewer choices. And stock-market volatility in October may have rattled prospective buyers.