Existing-home sales bounced back in December despite low inventory, the National Association of Realtors reports.
Median home prices for 2014 rose to their highest level since 2007, but total sales fell 3.1 percent from 2013. Total housing inventory at the end of December dropped 11.1 percent to 1.85 million existing homes available for sale.
“A drop in housing supply in December raises some affordability concerns in the months ahead as minimal selection and the potential for faster price appreciation could offset the demand from buyers encouraged by a stronger economy and sub-4 percent interest rates,” said NAR Chief Economist Lawrence Yun. “Housing costs – both rents and home prices – continue to outpace wages and are burdensome for potential buyers trying to save for a downpayment while looking for available homes in their price range.”
Find out more at Realtor.org.