Existing-home sales fell to end 2022 but they did not fall as much as economists were expecting, according to the latest data from the National Association of Realtors.
- M-O-M: Total existing-home sales fell to a seasonally adjusted annual rate of 4.02 million, this is down 1.5% from November but was better than the 3.0% that economists had projected.
- Y-O-Y: Total sales ended the year down 34.0% when compared to December 2021. This is the lowest level since 2014
Almost Even. Home price appreciation continues to fall but did end the year in positive territory, barely. The median existing-home price in December was $366,900, an increase of 2.3% from December 2021 but down 11% from the peak in June ($413,800).
- This marks 130 consecutive months of year-over-year increases, the longest-running streak on record.
Inventory. Total housing inventory was at 970,000 units to end the year, down 13.4% from November but is up 10.2% from one year ago.
- Unsold inventory sits at a 2.9-month supply at the current sales pace, down from 3.3 months in November but up from 1.7 months in December 2021.
- Properties typically remained on the market for 26 days in December, up from 24 days in November and 19 days in December 2021.
South On Top. Even though the South fell 33.1% for the year the region ended the year on top with an annual rate of 1.80 million. The Midwest took the number two spot with an annual rate of 1.01 million(-30.3%) followed by the West at 690,000 (-43.4%) and the Northeast at 520,000 (-28.8%).
We Got A First Timer. First-time buyers were responsible for 31% of sales in December, up from 28% in November and 30% in December 2021.
Analysis. Lawrence Yun, NAR Chief Economist, “December was another difficult month for buyers, who continue to face limited inventory and high mortgage rates…However, expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”