The US posted a 4.6% decline in existing home sales in December which hit an annualized rate of 6.18 million, with the fall connected to supply chain issues. DXY is down -0.08%, SPY is up +1.19%.
- On a year-over-year basis, existing-home sales fell by 7.1% from an annualized rate of 6.65 million in the prior year.
- Despite the December decline, existing-home sales rose by over 8.5% in 2021 to close the year at 6.12 million, a record since 2006.
- First-time buyers accounted for 30% of home buyers, up from 26% in November, with properties remaining in the market for 19 days, one more than the previous month.
- Existing home prices at the end of December was $358,000, an increase of 15.8% from the prior year, with prices rising in every region led by the South.
- NAR chief economist Lawrence Yun says home sales are likely to slow marginally in the coming months given the higher mortgage rates but expects boosts from increased hiring and stricter underwriting standards.
- The inventory of unsold homes closed the year at an all-time record low of 910,000 or 1.8 months of the sales pace. The supply was 18.0% below November and less by 14.2% from the prior year.