(Kitco News) - Gold prices are trading near session highs after the latest data showed the U.S. housing market improved beyond expectations in December.
Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 2.2% to a seasonally adjusted annual rate of 4.24 million in December, the National Association of Realtors (NAR) announced on Friday. The data was better than expected, as the consensus forecast of economists called for a 0.3% rise to 4.19 million. November’s total was unrevised at 4.15 million units. Year-over-year, sales were up 9.3% from December 2023.
Spot gold last traded at $2,781.10 for a gain of 0.96% on the day at the time of writing.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” said NAR Chief Economist Lawrence Yun. “Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months. Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market.”
The report noted that existing-home sales rose month-over-month in three major U.S. regions and slipped in the Midwest. Year-over-year, sales accelerated in all four regions.
Total housing inventory stood at 1.15 million units at the end of December, down 13.5% from November. Unsold inventory sits at a 3.3-month supply at the current sales pace.
The median existing-home price for all housing types in October was $404,400, up 6.0% from one year ago. All four U.S. regions registered price increases.
“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun added. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”
