4.02 million existing homes were sold in December (SAAR), down 1.5% from November and down 34% from December 2021, according to the National Association of Realtors (NAR). Existing-home sales totaled 5.03 million in 2022, down 17.8% from 2021.
Total housing inventory at the end of December amounted to 970,000 units, NAR said, down 13.4% from November and up 10.2% from one year ago.
The median existing-home price for all housing types in December was $366,900, up 2.3% from December 2021.
Existing homes sales fell further in December as affordability challenges continued to keep potential home buyers and potential sellers on the sidelines. However, sales could tick back up in the coming months as mortgage rates have continued to decline. Mortgage rates are now at their lowest level since September 2022 and the combination of easing price growth and falling mortgage rates are starting to improve housing affordability. In turn, mortgage applications for purchases surged in early January according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. While the stabilization of affordability will be good news for potential home buyers, a lack of available inventory could remain a constraint for home buying activity.