U.S. home sales tumbled to their lowest level in three years in December and house price increases slowed sharply, suggesting a further loss of momentum in the housing market.
The National Association of Realtors announced on Tuesday that existing home sales declined 6.4% to a seasonally-adjusted annual rate of 4.99 million units last month, their lowest level since November 2015.
November’s sales pace was revised slightly up to 5.33 million units from the previously reported 5.32 million.
Economists had projected existing home sales falling 1% to 5.25 million units in December.
Existing home sales, which make up about 90% of U.S. home sales, plunged 10.3% from a year ago. For all of 2018, sales fell 3.1% to 5.34 million units, the weakest since 2015.
Home sales stateside have been stymied by higher mortgage rates as well as land and labour shortages, producing tight inventory and more expensive homes. But a hopeful sign is that the 30-year fixed mortgage rate has dropped a four-month low, with much of the moderation occurring in the second half of December, and house price inflation is slowing.
