US Existing Home Sales Fall in December
Existing-home sales in the US fell 4.6% to a seasonally adjusted annual rate of 6.18 million in December of 2021, the lowest in 4 months and below market forecasts of 6.44 million mostly due to low inventory. Each of the four major US regions witnessed sales fall in the last month of 2021. Total housing inventory fell 18% to 910K units and the median existing-home price for all housing types was $358,000, up 15.8% from last year. Considering full 2021 however, sales increased 8.5% to 6.12 million, the highest since 2006. "December saw sales retreat, but the pullback was more a sign of supply constraints than an indication of a weakened demand for housing. This year, consumers should prepare to endure some increases in mortgage rates. I also expect home prices to grow more moderately by 3% to 5% in 2022, and then similarly in 2023 as more supply reaches the market", said Lawrence Yun, NAR's chief economist.
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