Real Estate Sales on the Decline

According to the National Association of Realtors, sales in November plunged by 8.6 percent from October on a seasonally-adjusted basis to a 4.49 million annualized rate. For much of the prior six months, sales had been relatively stable — hovering in a narrow band of 4.9 million to 5.1 million.

The November decline was sharpest in the Northeast — down 12 percent. In the Midwest, sales dropped by 7.4 percent, and 10.9 percent in the South. The Western region saw the least impact — down by 4.3 percent.

Just in case you’re feeling a little discouraged by November’s numbers, keep this in mind: The outlook for the coming months is a whole lot more positive.

Since the late October and November scares, mortgage rates have come down more than a percentage point and are now close to 50 year lows. We saw some 30-year fixed-rate mortgage quotes at four and three quarters percent last week, and most markets averaged around 5 percent.

The number one “bright note”, according to economic forecasters “is that (housing) is about to turn the corner and will start to lead us out” of the current morass, perhaps as soon as early summer.