- Lawrence Yun, NAR chief economist
American home re-sales plunged to the lowest level in six months in November following two consecutive months of solid growth, highlighting uneven recovery in the residential real estate. Sales of previously owned homes slumped 6.1% to a 4.93 million annual rate last month, the weakest level since May, down from 5.25 million in the preceding month, the National Association of Realtors said. November's sales, however, edged up 2.1% from the previous year and followed a particularly strong October, when sales rose to their highest level of the year. November's sharp drop is unlikely to signal the beginning of a weakening trend, while partly reflects low inventories, which declined to the lowest level in eight month, providing buyers with limited options. However, that impelled economists to lower the fourth-quarter gross domestic product forecast by at least one-tenth of a percentage point to around a 2.6% annual rate, referring to reduced brokers' commissions.
Housing has struggled to rebound and regain steam after stagnating in the second half of 2013 in the wake of an advance in mortgage rates, which have since fell from their peaks, hitting the lowest in 18 months in November. It has also lagged an increase in economic activity as tepid wage growth, a shortage of properties available for sale and higher home prices put off first-time buyers.
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