"This low level of inventories has two significant impacts: It reduces the number of sales as there are fewer homes to be purchased and it pushes up re-sale prices, with the median sales price of existing homes sold up by 5.5% in 2016 - the fifth consecutive year in which prices rose by more than 5%", Berson said.
Existing homes sales ran at an annual pace of 5.49 million in December, NAR said, down 2.8 percent from the November level (5.64 million) and just 0.7 percent higher than the same month a year ago.
November's existing sales pace was revised up to 5.65 million units, which was the highest since February 2007, from the previously reported 5.61 million units.
"Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market", Lawrence Yun, chief economist for the trade association, said in a news release.
"We have this combination of higher home prices, higher interest rates and less inventory...a lot less inventory", Fettke said.
First time buyers held steady, making up 32% of the market, the same as November of 2016 and December 2015.
Total housing inventory at the end December was down 10.8% to 1.65m existing homes available for sale, which is the lowest level since NAR began tracking the supply of all housing types in 1999. "Consumer confidence continued to improve last year, and mortgage rates were below 4 percent for most of the year, which drove more housing demand and, in turn, pushed up prices".
Existing home sales in the U.S. booked a weaker-than-expected December but saw their strongest year since 2006. At the current sales pace, there were 3.6 months' worth of available homes in December. The PHLX housing index.HGX was up 2.25 percent.
"We should continue to see some sales growth this year, but because of the tightness of inventory, our sales may plateau here as we hit the second half of the year", Hite said. The median price had been $200,000 in December 2015.
Mortgage rates could rise further as the Federal Reserve has forecast three rate hikes this year. The consensus estimate called for sales to decline to an annual rate of 5.55 million units.
According to NAR, about 750,000 to 850,000 home buyers would face higher costs, and 30,000 to 40,000 new home buyers would be sidelined without the reduction.
At the same time, the fixed 30-year mortgage rate increased 43 basis points in December from November to an average of 4.20 percent, according to data from mortgage finance firm Freddie Mac. There were 5.45 million sales during the year, up 3.8% compared to the full year 2015.
Sales were down in nearly every region in the country for December.
There are a lot of talking points to discuss but one key factor, for me, was the performance of Fernando Llorente. The lead was doubled in the 52nd minute as Llorente rose well to head home Gylfi Sigurdsson's inch ideal cross.
The American will need to serve well in this contest and her heavy groundstrokes should pose a problem for Strycova to deal with. Chasing a 23rd grand slam title, Williams has now reached at least the last 16 at Melbourne Park in her past 10 appearances.
A woman says she and her parents were fortunate to escape with their lives as a storm destroyed their home in rural south Georgia. However, information on whether anyone there had been killed or injured is not available, nor is the cost of the damage.
The tremors were felt across the Abruzzo, Lazio and Marche regions and also in Rome , over 100 kilometres (60 miles) away. Pope Francis was giving his weekly general audience in the Paul VI Hall in the Vatican at the time the tremors hit Rome .
In a joint press conference with the Moldovan president in Moscow, Putin took aim at those who assembled and released the report. Reuters has not independently verified the claims contained in the dossier.
The finding added that all employees of the Office of the President are bound by federal conflict of interest laws. The office of White House counsel had asked the Justice Department for a definitive opinion on Kushner's role.
President Obama and First Lady Michelle Obama await the White House arrival of President-elect Donald Trump and his wife. The Obama foundation is a non-profit organization and was formed in 2014 for the sole goal of managing the site.
Mina said Clayton was still alive; Mina said Loyd stood "over her defenseless body" and fired multiple shots at her, killing her. The judge said Thursday that Loyd would have a hearing in one week to determine counsel for him in the case over Dixon's death.
This really is the million dollar question for traders looking at USA stock indices, gold and the U.S. dollar. Trump said that the border-adjustment plan, which would tax imports and exempt exports, is "too complicated".
Apple sues Qualcomm for roughly $1 billion over royalties
According to the suit, Qualcomm even told Apple that Apple had forfeited nearly $1 billion in rebates by working with regulators. Qualcomm supplies the LTE modems used in Apple's line of iPhones, and up until 2016, the company was Apple's sole supplier.
Roger Federer vs Kei Nishikori
The fourth round encounter against Gael Monfils could have tilted either way, but the determined Spaniard found a way to win. The second set began again with an unstoppable Roger Federer , who broke the serve to his rival with his utmost ease.
Wolf 1061c could be the next habitable planet after Earth
As the Wolf 1061c is completely within the habitable zone of the star, the possibility of its support for alien life is high. Wolf 1061b orbits close to the parent star and is therefore very hot. "A planet that's too close would be too hot".
Is North Korea Planning a Long-Range Missile Launch?
In his New Year address, North Korean leader Kim Jong Un said Pyongyang was in the final stages of preparing to test an ICBM. It is also believed to have an upgraded version of the missile, known as the KN-14.
California Labor Market Ends 2016 On Down Note
For December's labor force, a total of 2,203,251 people were counted, up 8,588 from the number recorded in November. Over 90% of the cuts were in administrative and support services, which includes temporary search firms.
Tehran high-rise building collapses after fire
Local police officials have cordoned off the area and as this report is filed, more rescue personnel have been sent to the spot. A high-rise residential building in Tehran has collapsed after a blaze, Iranian state television reported Thursday.
Fire Emblem Heroes Announced for Android and iOS Devices
The original 3DS will not be supported, presumably as a result of the technical issues surrounding Hyrule Warriors Legends . Nintendo is still keeping things under wraps but promises that a brand new Fire Emblem game will be coming in 2018.
Deepika Padukone overwhelmed with XXX response
Hollywood action star Vin Diesel has shared a photo of Deepika Padukone in which the duo can be seen enjoying chai together. It was optional, but the Orange Is The New Black star knew she wanted to keep up with Diesel and do her own stunts.
Kerber celebrates 29th birthday with victory in Australian Open
No. 24 seed Anastasia Pavlyuchenkova got past Russian countrywoman Natalia Vikhlyantseva 6-2, 6-2 in another second-round match. Stan Wawrinka, the 2014 victor , recovered from his tetchy five-setter with Martin Klizan to beat Steve Johnson 6-3, 6-4, 6-4.
Officials not keen on bending the rules for Apple
Apple's Chief Executive Tim Cook met PM Modi last May to talk about its plans to enter the Indian manufacturing and retail space. Apple in a letter to India said that India needs to make an "attractive environment" for it to start manufacturing here.
LinkedIn overhauls its desktop website
It brings the social network in-line with its rivals, adopting a design that contains obvious parallels with Facebook and Twitter. LinkedIn, whose design has been criticized for years, showed off the design's capabilities in a video published today (below).
'Fire Emblem: Heroes' Running 'Choose Your Legends' Event
The Nintendo Direct presentation where the games were reported was considered the most fiery and emblematic one yet. The second title is the mobile smartphone game Fire Emblem Heroes and will be released for Android and iOS devices.
Gigi Hadid getting married to Zayn Malik?
What's amusing is- it was reportedly because Zayn was still close to Perrie that he and Gigi briefly broke up. In the song, Perrie implies Zayn was a bad lover, and hopes Gigi was having better luck than him.