Existing home sales fall 2.8% to a seasonally adjusted 5.49 million-unit rate in December from an upwardly revised 5.65 million sales pace the previous month, the National Association of Realtors announced Tuesday.
The December rate represents a 0.7% increase from the same month a year ago, and was just below the median 5.50 million unit pace predicted by economists polled by Thomson Reuters.
"Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market," said NAR chief economist Lawrence Yun. "However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December."
Sales in the regions were mostly lower in December. They were off 6.2% in the Northeast, 3.8% in the Midwest, 1.6% in the West and flat in the South.
The median sales price was $232,200 in December, a 4.0% increase from a year ago.
Inventory levels fell 10.8% from the previous month to 1.65 million existing homes, representing a 3.6-month supply at the current pace. Inventory was down 6.3% from the December 2015 level.
