The existing home sales in the United States dropped to a six-month low in the month of November after two consecutive months of strong surges, underlining the uneven nature of the recovery of the housing market.
According to the National Association of Realtors, the existing home sales in the country declined 6.1 percent to an annual rate of 4.93 million units. This is the lowest level recorded since May this year.
The sales pace in October was revised slightly down to 5.25 million units from previously recorded 5.26 million units.
The decline reported in November probably does not indicate the commencement of a weakening trend and in part reflected mulishly low inventories.
Several economists had expected sales to decline only to a 5.20-million unit pace.
The country’s housing sector has struggled hard to move into higher gear after coming to a stagnation point in the second half of 2013 due to the jump in mortgage rates, which have since declined from their peaks.
It has also lagged an acceleration in the economic activity as tepid growth in wages, a shortage of properties that were available for sale and the higher prices of home sidelined first-time buyers.