The latest stats are out on 2005 sales and specifically on how December fared when compared to previous years and it's not all good news.
Total existing-home sales were down 5.7% in December from. Sales were also 3.1% lower than in December 2004.
However the detail figures reveal interesting regional differences. In the Northeast, where the first signs of a slowdown were reported in the early fall, sales in December held even, indicating the market may be beginning to find its balance. In the West by contrast, December sales fell over eleven percent, perhaps indicating that the red-hot market out west is showing signs of a correction.
Overall, sales in 2005 were up 4.2% when compared to 2004 but much of the gain came in the first half of the year. The gains in 2005 mark the fifth consecutive year of increasing sales.
In reviewing the figures, David Lereah of the National Association of Realtors, expected the monthly sales decline. “This is part of the market adjustment we’ve been discussing, with a soft landing in sight for the housing sector,” he said. “The level of home sales activity is now at a sustainable level, and is likely to pick up a bit in the months ahead. Overall fundamentals remain solid, driven by population and employment growth as well as favorable affordability conditions in most of the country, so we expect the housing market to remain historically high but lower than last year’s record.”
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Northeast - Total existing-home sales held even at an annual sales rate of 1.09 million units in December, and were 3.5% lower than December 2004. The median price in the Northeast was $245,000, up 11.4% from a year ago.
Midwest - Sales dropped by 2.6% to an annual pace of 1.52 million in December, and were 1.9% below a year ago. The median price in the Midwest was $173,000, which was 10.9% higher than December 2004.
South - Sales declined 7.2% in December to a level of 2.58 million, but were 1.2% higher than December 2004. The median price in the South was $182,000, up 4.6% from a year earlier.
West - Sales fell 11.4% to a pace of 1.40 million in December, and were 11.4% below a year ago. The median existing-home price in the West was $318,000, up 14.0% from December 2004.
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