Sales of existing homes increased by almost 5% in November compared with a month earlier, the National Association of Realtors reported Thursday. 

Compared with a year earlier, sales were up 6.1%, marking the largest year-over-year increase since June 2021 when the housing market was in the midst of a pandemic buying spree. Home sales had been cooling since the second half of 2023, following a series of Federal Reserve interest rate increases that spiked mortgage rates.

“Home sales momentum is building,” NAR Chief Economist Lawrence Yun said in a statement. “More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago and consumers get used to a new normal of mortgage rates between 6% and 7%.”

The NAR reported that the national median price for an existing home grew 4.7% from November 2023 and is now $406,100. It’s the 17th consecutive month prices have increased.

Housing inventories fell 2.9% in November as buyers snapped them up.

“Existing homeowners are capitalizing on the collective $15 trillion rise in housing equity over the past four years to look for homes better suited to their changing life circumstances,” Yun said.

First-time home buyers increased in November to 30% of all sales — up from 27% in October. Cash sales made up 25% of transactions.

Existing-home sales in the Northeast saw the largest gains, increasing 8.5% compared with October. Median prices in the Northeast increased 9.9% over the same time period.