It's not clear if homebuyers are taking action because they're excited about a Trump-driven economy, or if they're simply fearful that higher interest rates will make waiting to buy more expensive down the road. Whatever the motivation is though, it worked in spades last month. The past of new-home sales grew to 592,000 units, while sales of existing homes jumped to 5.61 million. The new home sales rate is one of the best in years, second only to July reading of 622 million. Sales of existing home sales did reach a multi-year high level.
Perhaps the more interesting part of the story, however, as the home sales continue to move forward even though inventories remain quite limited. The supply of new homes slumped to 5.1 months worth last month, nearing a multi-year low, while the inventory of existing homes neared a multi-year low of four months worth. If more homes were on the market, more may be sold.
The most likely driver of November's brisk sales pace was the prospect of higher interest rates. Though the Federal Reserve has long said a rate hike -- or rate hikes -- were in the cards, such a move was all but inevitable earlier this month. It's a good things home buyers took action when they did, too, as the Fed is also expecting three more rate hikes in 2017... an outlook that's already been largely priced into the market's various interest rates.
Conversely, it's unlikely Donald Trump's surprise victory could have prompted a wave of buying in November. He wasn't elected until November the 8th (the 9th, technically), and closing on a house typically requires 30 days or more. And, that assumes a home had been selected as of the 9th.
Whatever the case, the trend is still going strong.