WASHINGTON (12/23/15)--Existing-home sales dropped by 10.5% in November compared with their October levels, according to numbers released by the National Association of Realtors Tuesday.
Single-family home sales fueled the decline, while condo and co-op sales scraped out a marginal gain (Economy.com Dec. 22).
While it’s not wholly clear why home sales took such a precipitous dive during the month, many have wondered whether the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure rule (TRID) nudged sales activity to December.
Studies have found that the rule stretches the average closing period to 41 days from 36 (MarketWatch Dec. 22).
“It’s hard to know what to make of the November home sales numbers, as market fundamentals are interacting with institutional changes,” said Andres Carbacho-Burgos, Moody’s analyst (Economy.com). “According to the National Association of Realtors, sales are experiencing significantly longer closing times, possibly because the Consumer Financial Protection Bureau’s 'Know Before You Owe' mortgage disclosure rule has taken effect.”
Additional numbers from the report: