Sales of existing homes slid 1% from November to December, though sales are expected to move higher this year. Existing Home Sales fell 1% from November to December to a 3.78-million-unit annualized pace, coming in below estimates of an unchanged reading per the National Association of Realtors (NAR). Sales were also 6.2% lower than they were in December 2022.
This report measured closings on existing homes in December and likely reflects people shopping for homes in October and November, when rates peaked.
On that note, NAR’s Chief Economist, Lawrence Yun, said, “The latest month’s sales look to be the bottom before inevitably turning higher in the new year. Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.”
More supply is certainly needed, as there were just 1 million homes available for sale at the end of December. This was down from 1.13 million at the end of November, and below healthy levels at just a 3.2 months’ supply of homes at the current sales pace.