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<FONT FACE="Arial" class="NormalMinus1"> <pre> By Josh Mitchell and Sarah Portlock </pre> <p> WASHINGTON-Sales of previously owned homes tumbled to a six-month low in November, a sign the housing market continues to underperform despite a burst of hiring and stronger economic growth. </p> <p> Existing-home sales declined 6.1% in November from a month earlier to a seasonally adjusted annual rate of 4.93 million, the National Association of Realtors said Monday. That was the lowest level since May. </p> <p> Revised figures showed sales climbed to a 5.25 million pace October, slightly weaker than the initially reported 5.26 million but still the highest level of the year. </p> <p> Economists surveyed by The Wall Street Journal had expected November sales to reach a rate of 5.20 million. </p> <p> November's sales were 2.1% higher from a year ago. </p> <p> NAR Chief Economist Lawrence Yun called last month's decline puzzling given strong job creation, rising consumer confidence and near-record stock-market levels. "Factors for improving home sales are rising," Mr. Yun said. "Today's decline, which is a large decline, is a bit puzzling and I think it will be a one-month aberration." </p> <p> He pointed to several possible reasons for the latest dip, including tightening inventory levels that have left consumers with fewer choices, and stock-market volatility in October that may have rattled prospective buyers. </p> <p> News Corp, owner of The Wall Street Journal, also owns Move Inc., which operates a website and mobile products for the National Association of Realtors. </p> <p> Previously owned homes represent about 90% of all homes sold. After falling in late 2013, sales have risen steadily this year amid a decline in mortgage rates and stronger job growth. </p> <p> The average rate on a 30-year fixed-rate mortgage fell to 3.80% last week, according to Freddie Mac, down from 4.53% at the start of the year. Meantime, the U.S. is on track to post its strongest year of job growth since 1999. </p> <p> But sales remain weak historically, with the Federal Reserve saying in its latest policy statement last week that the housing sector remains "slow." </p> <p> Fed Chairwoman Janet Yellen told reporters tight credit is likely a factor, with borrowers who lack pristine credit histories having a hard time obtaining loans. She also pointed to historically weak household formation. But she said she believes housing will pick up as the labor market improves. </p> <p> Monday's report showed that in November, existing-home sales fell in all four major regions--the Northeast, South, West, and Midwest. </p> <p> Inventories tightened. The number of homes for sale fell 6.7% in November from a month earlier to 2.09 million. At the current sales pace, it would take 5.1 months to exhaust the supply of homes on the market. </p> <p> The median sale price for existing homes continued to rise, hitting $205,300, or 5.0% above the year-ago level. </p> <p> Other recent reports offer mixed signals on the housing market. An index of homebuilder confidence dipped this month but remained at a level suggesting most home builders remain optimistic, the National Association of Home Builders said last week. Construction of single-family homes has risen slightly this year but remains weak historically. </p> <p> Write to Josh Mitchell at joshua.mitchell@wsj.com and Sarah Portlock at sarah.portlock@wsj.com. </p> <pre> </pre> <p> (END) Dow Jones Newswires </p> <p> December 22, 2014 10:15 ET (15:15 GMT) </p> <p> Copyright (c) 2014 Dow Jones & Company, Inc. </p> </FONT>
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