Existing home sales drop in December

Wells Fargo Research Team Wells Fargo

Summary

Record Low Inventories and Rising Prices Bring a Respite in Resales

Existing home sales dipped 4.6% to a 6.18 million-unit annual pace in December, ending a three-month streak of gains.
For all of 2021, existing home sales totaled 6.12 million units, which is up 8.5% from 2020 and is the highest annual level since 2006.
Limited inventories have constrained buying activity and pulled prices higher. Total existing inventory fell to an all-time low of 910,000 units, down 18% from November. The median price for all existing homes rose 15.8% over the year to $358,000.
First-time buyers accounted for 30% of total purchases in December, up from 26% in November. Investors accounted for 17%, up from 15%.
Sales of single-family homes fell 4.3% to a 5.52 million-unit pace, while sales of condos & co-ops fell 7% to a 660,000-unit pace.
The median price for single-family homes rose 16.1% over the year to $364,300, while the price of condos & co-ops rose 11.9% to $305,100.
Mortgage rates are on the rise. According to Freddie Mac's Primary Mortgage Market Survey, the average 30-year fixed rate mortgage rose to 3.56% during the week ending January 20, the highest since March 2020.

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Wells Fargo Research Team

Wells Fargo

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