MNI BRIEF: US December Existing Home Sales Fall 1.0% To 3.78M

U.S. sales of existing homes fell 1.0% to a seasonally adjusted annual rate of 3.78 million in December, the National Association of Realtors said Friday, below market expectations and the lowest sales activity since 2010. Sales slumped 6.2% from one year ago.

Still, the national median home price was up 4.4% from one year ago to USD382,600, the sixth consecutive month of year-over-year price increases. Median home prices were down 1.3% from November. “The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” said Lawrence Yun, NAR chief economist. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.” (See: MNI INTERVIEW: Resilient Housing To Rebound As Rates Fall)

The inventory of unsold existing homes cratered 11.5% from the previous month to 1 million at the end of December, equivalent to 3.2 months’ supply at the current sales pace.