The real estate market was hampered by higher mortgage rates and shortages of land and labor, resulting in a tight inventory. Although house price inflation has slowed down significantly, it remains above wage growth and has knocked out some first-time home buyers.
The NAR reported that home sales had increased in November, but recorded its largest annual decline in 7 1/2 years.
The ground-breaking ceremony for new homes also rebounded in November, but the completion of single-family homes dropped to their lowest level in more than a year for a third consecutive month. NAR's chief economist, NAR, said in a statement on Friday that data on outstanding home sales still did not reflect the recent favorable conditions for mortgage rates.