U.S. existing home sales best since 2006

Existing home sales in the United States experienced the best year in 2016 since the Great Recession, while sales softened in December, an industry report showed Tuesday.

Total existing home sales, which are completed transactions that include single-family homes, town houses, condominiums and co-ops, finished 2016 at 5.45 million sales and surpassed 2015 as the highest since 2006, said the National Association of Realtors (NAR).

In December, existing home sales decreased 2.8 percent compared to the revised data in November to a seasonally adjusted annual rate of 5.49 million, said NAR.

"Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market," said NAR chief economist Lawrence Yun in a statement.

"However, higher mortgage rates (since early November) and home prices combined with record low inventory levels stunted sales in much of the country in December," said Yun.

Total housing inventory at the end of December dropped 10.8 percent to 1.65 million existing homes available for sales, which is the lowest since NAR began tracking the supply of all housing types in 1999. Inventory is 6.3 percent lower than a year ago, has fallen year-over-year for 19 straight months and is at a 3.6-month supply at the current sales pace.

The median existing home price for all housing types in December was 232,200 U.S. dollars, 4 percent above the level a year ago, making the 58th consecutive month of year-over-year gains. Endit