Existing U.S. Home Sales Fell in December as Supplies at Lowest Level Since 1999

The National Association of Realtors said Tuesday that sales of existing homes fell 2.8 percent last month to a seasonally adjusted annual rate of 5.49 million. For all of 2016, sales posted an annual gain of 3.8 percent to 5.45 million.

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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.

Just 1.65 million homes were listed for sale in December. This marks a 6.3 percent drop from a year ago to the smallest total since 1999.