Americans retreated from purchasing homes in December, as the number of properties listed for sale sank to its lowest level since 1999, The Associated Press reports.
The National Association of Realtors says the sales of existing homes fell 2.8% last month to a seasonally adjusted annual rate of 5.49 million. For all of 2016, sales posted an annual gain of 3.8% to 5.45 million.
But the housing market has become trapped by a supply shortage that has pushed prices higher and may limit the potential for additional sales growth. Homebuyers simply have fewer choices, as new construction has yet to meet demand and existing homeowners have been reluctant to list their properties for sale.
“Home buying is likely to face additional headwinds going forward, which include low inventory levels, rebounding prices and higher mortgage rates,” says Admir Kolaj, an analyst at TD Bank, who adds that these factors are unlikely to “completely derail” the housing market.
Just 1.65 million homes were listed for sale in December. This marks a 6.3% drop from a year ago to the smallest total since 1999. The tight supplies pushed the median sales price to $232,200 last month, up 4% from a year ago.
Housing supply has also been tight in the Capital Region. According to the Greater Baton Rouge Association of Realtors, there were 2,959 homes on the market in November. That’s 20.3% fewer homes than the 3,714 that were up for sale in November 2015. GBRAR has yet to release figures for December.
