Existing-Home Sales Dropped in December as Inventory Reached Record Low
After three straight months of gains, existing home sales declined in December, though total sales for 2021 increased 8.5%, according to the CalculatedRisk Newsletter. Total existing home sales fell 4.6% from November and dropped 7.1% year-over-year to a seasonally adjusted annual rate of 6.18 million as inventory fell to an all-time low of 910,000 units in December. Sales are expected to drop year-over-year in January following an unprecedented winter for homebuying in 2021.
Sales in December (6.18 million SAAR) were down 4.6% from last month and were 7.1% below the December 2020 sales rate.
Some of the increase in sales since the beginning of the pandemic was probably related to record low mortgage rates, strong second home buying, a strong stock market and favorable demographics.
This was the fifth consecutive month with sales down year-over-year. Sales will likely be down YoY in January 2022 too since they were exceptionally strong last Winter.