Home sales hit the skids in December according to data recently released by the National Association of Realtors. Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 6.4% from November to a seasonally adjusted rate of 4.99 million in December, 2018. In addition they also report that sales are 10.3% lower than December, 2017. Total housing inventory at the end of December was 1.55 million, slightly higher than one year ago. There is a 3.7 month supply at the current sales pace.
“The housing market is obviously very sensitive to mortgage rates. Softer sales in December reflected consumer search processes and contract signing activity in previous months when mortgage rates were higher than today. Now, with mortgage rates lower, some revival in home sales is expected going into spring.” Said Lawrence Yun, the NAR’s chief economist.