2016 Existing Home Sales Highest in a Decade

The final month of 2016 saw the sale of 437,000 existing homes — including single-family residences, condominiums and co-operatives.

Home sales escalated compared to November, when the number was an upwardly revised 418,000, and December 2015, when it was 436,000.

Full-year pre-owned home sales came to 5.45 million, the best year since 2006, when the total was 6.48 million, according to the report from the National Association of Realtors.

On a seasonally adjusted basis, existing home sold at an annual rate of 5.49 million in December 2016, falling from an upwardly revised 5.65 million a month
earlier. But the rate rose from a downwardly revised 5.45 million a year earlier.

“Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” NAR Chief Economist Lawrence Yun stated in an accompanying news release. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.”

At 0.76 million, the annual rate in the Northeast was down from November by 6 percent — the biggest month-over-month decline of any region. The West fell 5 percent to a 1.20 million rate, and the Midwest was down 4 percent to a 1.28 million rate.

In the South, there was no change to the 2.25 million annual rate.

Existing U.S. single-family home sales came in a seasonally adjusted annual rate of 4.88 million in the latest month.

The latest activity left 1.65 million U.S. homes for sale as of Dec. 31, 2016, “the lowest level since NAR began tracking the supply of all housing types in 1999.”
That worked out to a 3.6 month supply — the thinnest supply of any month last year.

Houses were typically on the market for 52 days last month.

Last month’s median sales price was $232,200, rising from $223,200 a year prior — the 58th consecutive year-over-year increase. The average price was $274,000.