Existing Home Sales Decline to Great Recession Levels

Curt Long

"Existing home sales fell for the eleventh consecutive month in December, and to a level not seen since the Great Recession. Wrapping up the year, all regions experienced more than a 28 percent decline in year-over-year sales. Supply was constrained significantly last month, going from 3.3 months of inventory in November down to just 2.9 months of inventory in December. Lack of available homes in combination with declining but still relatively high mortgage rates continue to sideline potential buyers. While the median price is up on a year-over-year basis, the Case Shiller index has declined for four consecutive months through the latest reading in October. According to the National Association of Realtors, properties typically remained on the market 26 days in December, 2 days longer than in November. Last month was a difficult sales environment for other reasons too, including a harsh dose of cold weather that swept down the East Coast and across much of the Midwest, and the fact that two holidays fell squarely on prime sales days. If the labor market can remain buoyant, home sales should begin to trend modestly upward in early 2023."

​- NAFCU Chief Economist Curt Long

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