ARLINGTON, Va.—Existing-home sales decreased 6.4% in December. NAFCU Chief Economist and Vice President of Research Curt Long attributed the widespread declines to supply shortages and rising economic uncertainty.
"Although the direct impact of the government shutdown may not have been reflected in the December data, the indirect effect on homebuyer sentiment may have played a role," said Long in a NAFCU Macro Data Flash report. "Overall, the housing market continues to face significant headwinds from supply shortages, declining affordability, and rising economic uncertainty."
Sales fell in all four regions during December. Sales in the Midwest declined 11.2%, followed by the Northeast (-6.8%), the South (-5.4%) and the West (-1.9%).
Based on current sales, there were 3.7 months of supply at the end of December, down from 3.9 months in November. Analysts consider 6 months of supply to be roughly balanced between supply and demand, Long noted.
The median existing home price decreased from $257,700 in November to $253,600 in December. This is 2.9% higher than the median price from a year ago.