The National
Association of Realtors (NAR) informed on Friday that the U.S. existing home
sales declined 1.0 per cent m-o-m to a seasonally adjusted rate of 3.78 million
in December 2023 from an unrevised 3.82
million in November. This represented
the lowest rate since August 2010 (3.68 million).
Economists had predicted
home re-sales remaining unchanged
at a 3.82 million-unit pace last month.
In y-o-y terms,
existing-home sales dropped 6.2 per cent in December.
Across regions,
existing-home sales declined in the Midwest (-4.3
per cent m-o-m) and South (-2.8 per cent m-o-m), increased in the West (+7.8
per cent m-o-m) and held steady in the Northeast (0.00 per cent m-o-m). Compared
to December 2022, all four regions demonstrated decreases in sales.
Over the
reviewed period, the median existing home price for all housing types rose 4.4
per cent y-o-y to $382,600.
Single-family
home sales came in at a seasonally-adjusted annual rate of 3.40 million in December,
down 0.3 per cent m-o-m and 6.1 per cent y-o-y. Meanwhile, existing condominium and co-op sales were registered
at a seasonally-adjusted annual rate of 380,000 units in December, down 7.3 per
cent both m-o-m and y-o-y.
Commenting on
the latest data, Lawrence Yun, NAR chief economist, noted that the December
sales look to be the bottom before inevitably turning higher in 2024. “Mortgage
rates are meaningfully lower compared to just two months ago, and more
inventory is expected to appear on the market in upcoming months," he added.