Existing home sales dip in December

Wells Fargo Research Team Wells Fargo

Summary

Single-family sales pull back slightly, while condo sales fall sharply

Existing home sales ended last year on a low note and declined 1.0% in December. Single-family sales and condo sales both declined during the month. The 3.78 million-unit pace of total resales hit during the month marks a fresh cycle low and was the slowest sales pace since 2010. December's unexpected dip is a reminder that financing costs are just one factor in the decision to purchase a home. Mortgage rates have dropped by over a full percentage point since last October, yet buyers still need to contend with low supply and rising prices. That noted, there is plenty of evidence that buyers are starting to come out of hibernation as rates move lower. A recent upturn in mortgage applications for purchase suggests resale activity should begin to gain momentum in coming months.

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Wells Fargo Research Team

Wells Fargo

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