US existing home sales fall by more than anticipated in November

According to the National Association of Realtors, in seasonally adjusted terms existing home sales dropped at a month-on-month pace of 7.7% in November to reach an annual rate of 4.09m.

Economists had anticipated a reading of 4.20m.

The median price of an existing home meanwhile was ahead by 3.5% in comparison to a year ago at $370,700 and the inventory of unsold homes at 3.3 months' worth of sales.

Commenting on the latest housing figures, Ian Shepherdson, chief economist at Pantheon Macroeconomics, pointed out how the latest mortgage application data suggested that a stabilisation in sales was likely over the next couple months.

Prices on the other hand had "much further to fall from here", he added.

"The bigger picture is that both the NAR and Realtor measures of existing home prices have been trending lower for several months now [...] but remain extremely elevated by past standards, both in level terms and as a ratio to disposable incomes.

"We look for a further 15-to-20% decline in prices over the next year, bringing the ratio of home prices to disposable incomes back in line with its long run average."

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