US existing home sales have dropped in December below analyst estimates. Supply of houses available on the market have dropped to levels last seen in 1999 which will limit choices for buyers. The National Association of Realtors announced that existing home sales have dropped 2.8 percent to an adjusted annual rate of 5.49 million units. November’s annual rate of sales was 5.65 million units, which was the highest since February 2007.
Economists had estimated sales declining 1.1 percent to 5.52 million units in December. Although a strong economy, busy labor market and rising wages are supporting the housing market, sales remain weak as there is a deficit of available inventory. In the previous month, the number of unsold homes on the market decreased by 6.3 percent from a year earlier to 1.65 million units.