As I expected, in November, existing home sales fell for the first time since May 2020 and came below expectations (6.70Me). According to the National Association of Realtors (NAR), they declined by 2.4% MoM, reaching 6.69M (V 6.86M prior) and aligning with the recent fall of pending home sales.
As I already noted, several reasons can explain this decline namely the significant drop in inventory (available inventory declined 22% from a year earlier to 1.28 million units, the lowest in data back to 1982), which has been sometimes cited as a dampening factor on sales such as in North East Florida. In addition, there is evidence that the spike of coronavirus cases in most affected areas, such as Midwest, also affected demand in November. As an example, existing home sales in Minnnesota only increased by 15.8% YoY in November (below the national average of +21.8%), a pace significantly weaker than in October (+28.9% YoY).