Sales of existing US homes drop in December

DEPRESSED housing inventory curbed US sales of previously owned homes at the end of the strongest year since 2006, and a recent spike in mortgage rates risks a further tempering of purchases.

Contract closings decreased 4.6 per cent in December from the prior month to an annualised 6.18 million, figures from the National Association of Realtors (Nar) showed on Thursday (Jan 20). Still, sales climbed to 6.12 million last year, while home prices appreciated by the most since 1999.

The December drop reflected both lean inventory and the start of a pickup in mortgage rates that have since climbed to the highest level since March 2020. The number of properties for sale last month was the lowest on record.