The National Association of Realtors reported that existing home sales fell by 6.4%, to a seasonally adjusted rate of 4.99 million units in December. This represents the lowest level of home sales since November 2015.
Despite the slower number of sales, the price for homes still remains on an upward swing. Additionally, November’s sales were revised up to 5.33 million units from the previously reported 5.32 million units.
According to the report issued by the National Association of Realtors, existing home sales fell by 10.3% from the prior year. The total number of all home sales fell by 3.1% to 5.34 million units.
The numbers reflect the impact of the higher mortgage rates, the slower construction starts, and the continued rise in home prices.
Demand remains basically stable, even though inventory in most markets has been depleted to just 4-5 months supply.
All four major national regions participated in lower housing sales. The report also indicates that the erosion of inventory has fallen nationally to 3.7 months, down from 3.9 months supply in November.
The median existing home price increased by 2.9% from the prior-year period to $253,600 in December. Though it was an increase, this represents the smallest increase in the median existing home price since February 2012