(CN) — Home sales surged 5.6 percent higher in November, that fastest pace in 11 years, the National Association of Realtors said Wednesday.
The Realtors said sales rose to a seasonally adjusted annual rate of 5.81 million units. The last time the turnover in home was this healthy was in December 2006, when properties sold at an annual pace of 6.42 million.
“Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end,” said NAR chief economist Lawrence Yun.
“As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month,” he continued. “The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”
The Realtors said 1.67 million properties were for sale in November, a 9.7 percent decline from a year ago.
The industry association also noted that there is currently only 3.4 months’ supply of homes on the market.
The limited inventory has pushed home values higher. The median home sales price increased 5.8 percent from a year ago to $248,000 in November.
Sales rose last month in the Northwest, Midwest and South. But they fell in the West, where homes cost more and the price appreciation has been the most extreme.