The sales of the existing house in the United States rises to the highest level in 10 months in December by Reuters

Written by Lucia Motikani

WASHINGTON (Reuters) – The sales of existing homes in the United States increased to the highest level in ten months in December, but more gains are likely to be limited due to high real estate mortgage interest rates and home prices, which keeps many potential sidelines on the margin .

The National Association of Real Estate Bladesters said today, Friday, that home sales increased 2.2% last month to an average annual average in light of the seasonal factors of 4.24 million units, which is the highest level since February.

Economists had polled their opinions that expected home sales to an average of 4.19 million units. Sales increased by 9.3% on an annual basis, which is the largest increase since June 2021.

A total of 4.06 million houses were previously owned last year, the lowest number since 1995.

Lawrence Yun, Nar’s chief economist, said: “House sales have shown in the last months of the year a strong recovery despite the high real estate mortgage rates,” said Lawrence Yun, Senior Economist in NAR. “The gains of jobs and wages, as well as increased inventory, positively affect the market.”

A poll from the Real Estate Finance Agency Vi Mai (OTC 🙂 On Wednesday, the sales of existing houses in the first half of the year, noting that “the new homes are now being competitive with the current homes and are much more available.” It expected the average mortgage with a fixed price for 30 years to reach 6.7 % in the first quarter and decrease to 6.6 % in the second quarter.

Real estate mortgage rates increased late last year in conjunction with the returns of US Treasury bonds, which jumped amid economic flexibility, especially in the labor market, and investor fears that President Donald Trump’s plans to reduce taxes and wide customs tariffs and collective deportation can lead to increased inflation.

The Federal Reserve has reduced its expected discounts in interest rates for this year to only two of the four discounts that it expected in September, when he launched a policy reduction course. The average interest rate on the mortgage for 30 years at a fixed interest rate is just less than 7 %.

The residence of the housing decreased by 13.5 % to 1.15 million units last month. The show increased by 16.2% compared to last year. The average price of existing homes increased by 6.0% compared to the previous year to reach $ 404,400 in December, and reaches a record level at $ 407,500 in 2024.

With the frequency of sales in December, it will take 3.3 months to exhaust the current stock of existing homes, up from 3.1 months ago. The offer is seen for four to seven months as a healthy balance between supply and demand.

Real estate usually remain in the market for 35 days in December, compared to 29 days last year. Buyers for the first time represent 31% of sales compared to 29% a year ago. They have achieved a standard low level of 24 % in 2024. Economists and real estate owners say a 40 % stake for a strong housing market is needed.

Cash sales constituted 28% of transactions last month, a decrease from 29% a year ago. The stalled sales, including the mortgage imprisonment, formed only 2% of transactions, unchanged from last year.