A report by the National Association of Realtors indicated that the existing-home sales totalled 6.12 million, increasing by 8.5% from the 2020 figure. Despite the figures recording a near all-time high, the December existing-home sales plunged 4.6% from November. NRA notes that the December drop emerged as the first decline on a month-to-month basis in three months. Elsewhere, the year-over-year sales also dropped 7.1% since last December. First-time buyers accounted for 30% of sales in December, growing 26% in November and down from 31% in December 2020. Furthermore, all four regions in the U.S. recorded a decrease from November alongside year-over-year figures. In terms of types of houses, single-family home sales also dropped to an annual rate of 5.52 million in December, down 4.3% from 5.77 million in November. The report noted that already, home builders are approaching 2022, intending to reverse the December trend. However, NAR acknowledged that reversing the figures will be a challenge.
Mortgage rates to affect 2022 outlook
Moving into 2022, the association projects that existing-home sales will slightly drop, especially due to rising mortgage rates. However, the gains in employment are likely to act as a catalyst for growth. He also indicates that first time buyers will likely drop in 2022. Notably, the NAR stated that there was a spike in first-time buyers in December in anticipation of rate hikes.
