(Kitco News) - Spot gold is testing key support this morning after the latest data showed the U.S. housing market improving beyond expectations last month.
Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 5.1% to a seasonally adjusted annual rate of 4.35 million in December, the National Association of Realtors (NAR) announced on Wednesday.
The data was better than expected, as the forecast of economists called for a smaller increase to 4.21 million. November’s total was unrevised at 4.14 million units. Year-over-year, sales were down 1.4% from December of 2024.
Spot gold dipped down to test support at $4,600 in the minutes prior to the 10 am EST release, and last traded at $4,606.70 for a gain of 0.45% on the day at the time of writing.
Month-over-month sales increased in all regions, while year-over-year sales increased in the South, remained flat in the Midwest and West, and decreased in the Northeast.
“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said NAR Chief Economist Lawrence Yun. “However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years. The gains were broad-based, with all four major regions improving from the prior month.”
Total housing inventory was 1.18 million units in December, down 18.1% from November and up 3.5% from the 1.14 million in December 2024. Unsold inventory stood at 3.3-month supply, down from 4.2 months in November and up from 3.2 months in December 2024.
"Inventory levels remain tight,” Yun added. "With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February."
The median existing-home price for all housing types in December was $405,400, up 0.4% from the $403,700 posted one year ago, and marking the 30th consecutive month of year-over-year price increases.
