US home sales drop as supply tumbles to 17-year low

Washington

US home resales fell more than expected in December as the supply of houses on the market dropped to levels last seen in 1999, but the housing market recovery remained intact against the backdrop of a tightening labour market.

The National Association of Realtors (NAR) said on Tuesday that existing home sales decreased 2.8 per cent to a seasonally adjusted annual rate of 5.49 million units. In addition to the lack of properties to purchase, rising home prices and mortgage rates also likely sidelined some buyers last month.

The drop in sales followed thr…