Existing-home sales in the USA continued to recover following the rise in October, with the level of sales activity suggesting a turn in the market, according to a report published by the National Association of Realtors following Christmas.

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 0.6 percent to a seasonally adjusted annual rate of 6.28 million units in November from a level of 6.24 million in October, but were 10.7 percent below the 7.03 million-unit pace in November 2005.

David Lereah, NAR’s chief economist, said modest gains are expected for home sales.  “As the housing market recovers from its correction, existing-home sales should be rising gradually during 2007 – it looks like we may have reached the low point for the current cycle in September,” he said. 

“We’ve entered a more sustainable period of home sales now, and we expect greater support for prices over time as inventory levels are eventually drawn down.”

Total housing inventory levels fell 1.0 percent at the end of November to 3.82 million existing homes available for sale, which represents a 7.3-month supply at the current sales pace.

The national median existing-home price for all housing types was $218,000 in November, which is 3.1 percent lower than November 2005 when the median price was $225,000.  The median is a typical market price where half of the homes sold for more and half sold for less. 

“For every 1.0 percent drop in home prices, we project an additional 50,000 buyers are drawn into the market,” Lereah said.