Sales of existing homes dropped 6.4 percent in December, according to the National Association of Realtors.
NAR Chief Economist Lawrence Yun cited higher interest rates in the previous month as one of the leading causes of the decline.
“The housing market is obviously very sensitive to mortgage rates,” Yun said in a statement. “Now, with mortgage rates lower, some revival in home sales is expected going into spring.”
The median existing home price in December was up 2.9 percent year-over-year at $253,600.
The average length of time on the market for a home was 46 days, an increase from 42 days in November and 40 days in December 2017.
Addressing the partial government shutdown, NAR President John Smaby said it has not had a significant effect on December closings, but the uncertainty of the shutdown has potential to harm the market.
“Once the government is fully reopened, I am hopeful that housing transactions will increase,” he said in a statement.
Existing home sales declined across the board regionally compared with November, falling 6.8 percent in the Northeast; 11.2 percent in the Midwest; 5.4 percent in the South; and 1.9 percent in the West.
