Authored by RSM US LLP
Sales of existing homes fell for the 11th straight month in December, finishing their worst year since 2008, the National Association of Realtors reported on Friday.
Still, there is some room left for sales to fall further as the Federal Reserve has signaled that it will continue to tighten monetary policy.
December’s sales declined by 1.5% to 4.02 million units annualized. That brought the total number of units sold last year to 5.03 million, 17.8% lower than in 2021.
Monthly sales blew past the pandemic’s bottom of 4.07 million units in May 2020 as the housing market continued to stumble.
Most of the decline was driven by falling demand as the impact of rising mortgage rates has set in. As a result, price growth continued to decelerate in December, falling to only 2.3% year-over-year, the lowest since May 2020.
On a non-seasonally adjusted basis, median prices dropped for the sixth straight month to $366,000, highlighting how weak the housing market has been in the second half of the year.
On the other hand, a fall in supply also contributed to the lower sales. There were 2.9 months of supply at December’s selling rate, down from 3.3 months in November.
The decline in sales came from both single-family homes and condos, which fell by 1.1% and 4.5% on the month, respectively. Sales fell in all regions fell except for the West.
This article was written by Tuan Nguyen and originally appeared on 2023-01-20.
2022 RSM US LLP. All rights reserved.
https://realeconomy.rsmus.com/home-sales-dropped-by-17-8-last-year-in-biggest-drop-since-2008/
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. The RSM(tm) brandmark is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Lauterbach, Borschow & Co. is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.
For more information on how the Lauterbach, Borschow & Co. can assist you, please call us at (915) 544-6950.
