U.S. home resales rebounded strongly in December from a 19-month low and prices surged, indicating the housing market recovery south of the border remained intact despite signs of slowing in economic growth in recent months.
The U.S. National Association of Realtors said on Friday existing home sales jumped a record 14.7% to an annual rate of 5.46 million units, after being temporarily held back by the introduction of new mortgage disclosure rules, which had caused delays in the closing of contracts in November.
Sales were also boosted by unseasonably warm weather. November's sales pace was unrevised at 4.76 million units. Economists had forecast home resales rebounding 8.9% to a 5.2-million rate.
Sales rose 6.5% to 5.26 million units in 2015, the strongest since 2006. Last month's snapback suggests that November's slump was a blip and should offer some assurance that domestic demand remains fairly healthy, even as growth appears to have braked sharply at the end of 2015 because of a downturn in manufacturing and mining activity.
Housing is being supported by a strengthening labour market stateside, which has resulted in an acceleration in household formation. Sales, however, remain constrained by a shortage of homes available for sale, which is limiting choice for buyers.
