A delivery man delivers packages in a Los Angeles neighborhood on January 17, 2024.
Frederic J. Brown | AFP | Getty Images
Sales of previously owned homes fell 1% in December compared with November to 3.78 million units on a seasonally adjusted annualized basis, according to the National Association of Realtors. Sales were 6.2% lower than in December 2022, marking the lowest level since August 2010.
Full-year sales for 2023 came in at 4.09 million units, the lowest tally since 1995.
Regionally, on a month-to-month basis, sales were unchanged in the Northeast and fell 4.3% in the Midwest. Sales were down 2.8% in the South but rebounded 7.8% in the West. On a year-over-year basis, sales were lower in all regions.
The count of home closings is based on contracts likely signed in late October and November, when mortgage rates were considerably higher than they are now. The average rate on the 30-year fixed loan rose to about 8% in October before falling to the 7% range in November. It is now at 6.89%, according to Mortgage News Daily.
“The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” said Lawrence Yun, NAR’s chief economist, in a release. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.”
Inventory fell 11.5% from November to December, but it was up 4.2% from December 2022. There were 1 million homes for sale at the end of December, making for a 3.2-month supply at the current sales pace. A six-month supply is considered balanced between buyer and seller.
Tight supply continues to reheat home prices. The median price of a home sold in December was $382,600, an increase of 4.4% from December 2022. That is the sixth consecutive month of year-over-year price gains. The median price for the full year was $389,800, a record high.
Homes stayed on the market longer in December, at an average of 29 days, up from 25 days in November. The…
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