- New study reinforces theory Covid emerged at Chinese market
- World Bank boosts climate financing by 10 percent
- Bagnaia eyeing summit on home ground in 100th MotoGP
- 'Something was wrong', defendant in French mass rape tells court
- Hezbollah chief admits 'unprecedented' blow in device blasts
- Sales of US existing homes slip slightly in August
- Fear, panic haunt Lebanese after devices explode
- Labuschagne sparks Australia fightback in England ODI opener
- S.Africa's HIV research power couple says fight goes on
- Why is Israel focusing on border with Lebanon?
- Mpox vaccines administered in Rwanda, first in Africa
- US Fed rate cut is 'very positive sign' for economy: Yellen
- Unknown Mozart string trio discovered in Germany
- 'Are we five-year-olds?' F1 drivers won't mind their language
- Brazil judge orders X to reimpose block or face hefty fine
- Munich to rename stadium street after Beckenbauer
- Champions Italy to face Argentina in Davis Cup Final 8
- The winding, fitful path to weight loss drug Ozempic
- Italians defeat American Magic to reach Louis Vuitton Cup final
- Norris has 'nothing to lose' as he hunts Verstappen in Singapore
- Kyiv 'outraged' at Swiss showing of Russian war film
- French city renames Abbe Pierre square after abuse claims
- Footballer charged after huge cannabis seizure at UK airport
- Vatican recognises Medjugorje shrine, but not Virgin's messages
- Israel bombs Hezbollah strongholds in Lebanon after wave of deadly blasts
- Bank of England freezes rate after jumbo US cut
- Playing Nadal is 'kind of a nightmare', says Alcaraz
- Portugal tackles last of deadly northern forest fires
- Ton-up Ashwin lifts India to 339-6 against Bangladesh
- Departing NATO chief warns US against 'isolationism'
- Coming winter 'sternest test yet' for Ukraine energy grid
- Evacuations as tail of Storm Boris floods northeast Italy
- Lebanon's Hezbollah reeling after second wave of deadly blasts
- Taiwan recognises same-sex marriages between Chinese, Taiwanese
- Stock markets rally after jumbo US rate cut
- Gabon's ousted leader Bongo says renouncing politics for good
- Lebanon device blasts: what we know about deadly attacks
- Equity markets rally after jumbo US rate cut
- Late Harrods owner Al-Fayed accused of rape: BBC
- Hong Kong man sentenced 14 months for wearing 'seditious' T-shirt
- Lebanon's Hezbollah in disarray after second wave of deadly blasts
- Equity markets, yen rally after jumbo US rate cut
- Meta and Spotify blast EU decisions on AI
- Hasan takes three as Bangladesh rattle India in first Test
- Two killed during police operation in New Caledonia
- Flood-hit region leaders to meet in Poland to discuss EU aid
- Sri Lanka to vote in first poll since economic collapse
- Hong Kong probe finds Cathay Airbus defect could cause 'extensive' damage
- AI development cannot be left to market whim, UN experts warn
- All Blacks primed for 'hell' of a Wallabies clash
RBGPF | 5.79% | 60.5 | $ | |
NGG | -1.68% | 68.89 | $ | |
RIO | 3.51% | 65.2 | $ | |
JRI | -0.08% | 13.429 | $ | |
GSK | -1.33% | 41.875 | $ | |
SCS | -6.51% | 13.248 | $ | |
CMSC | -0.14% | 25.02 | $ | |
AZN | 1.03% | 79.4 | $ | |
BCC | 4.21% | 143.087 | $ | |
BCE | -0.65% | 35.38 | $ | |
RYCEF | 5.48% | 6.93 | $ | |
RELX | 1.44% | 48.06 | $ | |
BP | 1.55% | 32.94 | $ | |
CMSD | 0.08% | 25 | $ | |
BTI | -0.84% | 37.565 | $ | |
VOD | -1.69% | 10.06 | $ |
US existing home sales end banner year with slump
The US real estate market last year saw the most existing homes sold in 15 years, even as sales slumped in the final month of 2021, according to industry data released Thursday.
With low borrowing rates spurring homebuyers, 6.12 million pre-owned homes were sold last year, the most since 2006 and 8.5 percent more than in 2020, the National Association of Realtors (NAR) said.
But it hasn't been smooth sailing for the property market, which plays a major role in the US economy.
High demand has pushed prices higher, while shortages of key materials and workers exacerbated the shortage of homes for sale.
In December, NAR said home sales declined 4.6 percent compared to November, breaking a streak of three straight months of increases, and worse than analysts expected.
"December saw sales retreat, but the pull back was more a sign of supply constraints than an indication of a weakened demand for housing," NAR Chief Economist Lawrence Yun said in a statement, adding that sales for 2021 overall "finished strong."
The supply challenges are far from over, with the inventory of homes for sale hitting an all-time low in December of 910,000 units, 18 percent lower than in November and 14.2 percent below the final month of 2020. That was equivalent to 1.8 months supply at the current sales pace.
"Home builders have already made strides in 2022 to increase supply, but reversing gaps like the ones we've seen recently will take years to correct," Yun warned.
Prices continued their upward climb amid the shortage, hitting a median of $358,000 last month, a 15.8 percent increase for the year, and rising in all regions of the country, the report said.
Sales in the West and South saw the biggest declines, dropping of 6.8 percent and 6.3 percent, respectively, compared to November, while the Midwest and Northeast each dropped 1.3 percent.
Nancy Vanden Houten of Oxford Economics predicted home sales this year would "mostly trend sideways" as the Federal Reserve raises lending rates and the economy continues to recover from the Covid-19 pandemic.
"Resilient demand will underpin the housing market, but limited supply and declining affordability from both higher prices and rising mortgage rates will constrain the pace of sales," she wrote in an analysis.
O.Lorenz--BTB