US existing home sales drop more than expected in December
Sales of US existing homes fell more than expected in December, according to data from the National Association of Realtors.
Sales were down 2.8% to a seasonally-adjusted annual rate of 5.49m from an upwardly-revised 5.65m in November. This marked a nine-year high but was only 0.7% higher on the year and worse than the expected decline to 5.50m.
Meanwhile, the median price for an existing home was $232,200, up 4% from December 2015 and marking the 58thconsecutive month of year-over-year gains.
Total housing inventory at the end December was down 10.8% to 1.65m existing homes available for sale, which is the lowest level since NAR began tracking the supply of all housing types in 1999. Inventory was 6.3% lower than a year ago.
Lawrence Yun, NAR chief economist, said: “Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market. However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.
"While a lack of listings and fast rising home prices was a headwind all year, the surge in rates since early November ultimately caught some prospective buyers off guard and dimmed their appetite or ability to buy a home as 2016 came to an end."