The National Association of Realtors (NAR) reported on Wednesday that November marked the 117th straight month of year-over-year increases in housing prices across the nation, the longest-running streak on record.

NAR chief economist Lawrence Yun cites “near record-low supply levels” and “labor shortages” as impacting the housing market.

Existing home sales rose 2% in November from October to a seasonally adjusted annual rate of 6.5 million. Compared to a year ago, the unsold homes inventory decreased by 13.3% to 1.1 million. According to NAR, that decrease is equivalent to approximately two months of sales.

NAR recorded a median existing-home sales price rise of 14% for November, year over year, to $353,900.

Overall, 83% of home sales in November were on the market for less than a month.

New US home sales boomed in 2020, but tightening supply, rising prices as well as the toll of Covid-19 could chill the sector, at least in early 2021
New US home sales boomed in 2020, but tightening supply, rising prices as well as the toll of Covid-19 could chill the sector, at least in early 2021 AFP / Chris DELMAS

Looking to 2022, Yun said, “mortgage rates are projected to jump in 2022. However, I don’t expect the imminent increase to be overly dramatic.”

Yun predicts the 30-year fixed mortgage rate will be 3.7% by 2022. The NAR’s “Real Estate Forecast Summit,” which features economists and housing experts, found that inflations would likely ease to 4% in 2022.

They expect a rise in home prices of 5.7%.

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