MNI DATA ANALYSIS: US Dec Existing Home Sales -6.4% to 4.99M

By Kevin Kastner, Shikha Dave, and Harrison Clarke

     WASHINGTON (MNI) - Home resales falling 6.4% in December to an annual rate

of 4.99 million, the lowest since November 2015, when it was 4.78 million. Sales

were below expectations for a decline to a 5.21 million pace, data released by

the National Association of Realtors reported Tuesday showed.

     For 2018 as a whole, sales were 5.34 million, down 3.1% from 5.51 million

in 2017. 

     "The housing market is obviously very sensitive to mortgage rates... Now,

with mortgage rates lower, some revival in home sales is expected going into

spring," NAR Chief Economist Lawrence Yun told reporters.

A survey showed that 75% of realtors have not seen a noticeable impact due to

the shutdown. However, the longer the shutdown continues, the more likely it is

that it will impact home resales. 

--SUPPLY FALLS

     The number of housing units available for sale fell 10.9% in December to a

total of 1.55 million houses, lowering the months supply to 3.7 months at the

current sales pace from 3.9 months in November.

     November sales were revised upwards to a 5.33 million rate from the

originally reported 5.32 million annual rate.

--REGIONAL DATA SHOWS WIDESPREAD DECLINES

     Sales declined in all regions. Sales in the Northeast fell 6.8%, in the

Midwest 11.2%, in the Southeast 5.4%, and in the West 1.9%. 

--PRICES UP Y/Y

     December's national median price of $253,600 was up 2.9% from a year

earlier, the softest price gain since February 2012, a sign of decelerating home

price growth. Yun noted that growth in home prices has slowed to a pace at or

below wage growth.

--MNI Washington Bureau; +1 (973) 494-2611; email: harrison.clarke@marketnews.com

[TOPICS: MAUDS$,M$U$$$]