US: Existing Home Sales decline, but the trend is improving – Wells Fargo

November Existing Home Sales dropped 1.7% to a 5.35 million (annual) in November. Sales should continue to improve with support from low mortgage rates, although inventory shortages will limit the upside, according to analysts at Wells Fargo. 

Key Quotes: 

“The monthly decline was owed to a 1.2% fall in single-family sales and a 5.1% drop in condo sales.”

“Homes continue to sell fairly swiftly, averaging just 38 days on the market, quicker than the 42 averaged during the same month last year and clear evidence that demand remains strong.”

“We expect mortgage rates, which averaged 3.7% during November, to remain fairly low and keep sales moving in a positive direction. However, a substantial break-out to the upside is unlikely given the shortfall of homes for sale.”