Existing-home sales fall after months of increases

​​​​WASHINGTON – After two consecutive months of increases, existing-home sales declined nationally in December, according to the National Association of Realtors. None of the four major U.S. regions saw a gain in sales activity last month.

Total existing-home sales decreased 6.4 percent from November to a seasonally adjusted rate of 4.99 million in December. Sales are now down 10.3 percent from a year ago.

NAR Chief Economist Lawrence Yun says current housing numbers are partly a result of higher interest rates during much of 2018.

The median existing-home price for all housing types in December was $253,600, up 2.9 percent from December 2017. This price increase marks the 82nd straight month of year-over-year gains.

Total housing inventory at the end of December decreased to 1.55 million, down from 1.74 million existing homes available for sale in November, but this represents an increase from 1.46 million a year ago. Unsold inventory is at a 3.7-month supply at the current sales pace, down from 3.9 last month and up from 3.2 months a year ago. The Real Estate Center considers a six- to 6.5-month inventory a balanced market.

Properties typically stayed on the market for 46 days in December, up from 42 days in November and 40 days a year ago. Thirty-nine percent of homes sold in December were on the market for less than a month.

Realtor.com’s Market Hotness Index revealed that Midland and Odessa were among the hottest metro areas in December. They joined Chico, Calif.; Columbus, Ohio; and Fort Wayne, Ind.

Existing-home sales in the South—the region that includes Texas—dropped 5.4 percent to an annual rate of 2.09 million in December, down 8.7 percent from last year. The median price was $224,300, up 2.5 percent from a year ago.