The number of houses sold in America fell in December after several months of stable activity. Despite the fall, the total number of homes sold in 2007 was the fifth highest on record. 

The average (median) price for all housing types was $208,400 in December, down 6.0 percent from a year earlier, according to the National Association of Realtors.

House sales, including single-family, townhouses, condominiums and co-ops, dropped two percent to a seasonally adjusted annual rate of 4.89 million in December from 5.00 million in November.  Sales were 22 percent below the levels seen a year ago.

The total number of properties sold in America in 2007 was 5,652,000, significantly lower than the previous year’s 6,478,000 sales.

Lawrence Yun, chief economist at NAR, said the market is experiencing uncharacteristic weakness.

“Home sales remain weak despite improved affordability conditions in many parts of the country, but we could get a quick boost to the market if loan limits are raised in combination with the bold cut in the Fed funds rate. Home prices are lower, mortgage interest rates continue to decline and incomes are higher, but many potential buyers are delaying a purchase.”

According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage fell to 6.10 percent in December from 6.21 percent in November.  Last week, Freddie Mac reported the 30-year fixed rate had continued to fall, dropping to 5.69 percent.

The number of homes for sale in America at the end of December fell to 3.91 million, which represents a 9.6-month supply at the current sale numbers, down from a 10.1-month supply in November. Lawrence Yun commented: “The fall in inventory in December is encouraging, but inventories remain elevated and buyers have a clear edge over sellers in many markets.”

The median single-family house sale price was $206,500 in December, down 6.5 percent from a year earlier.

House sales in the Northeast dropped 4.6 percent to an annual rate of 830,000, and are 22.4 percent below a year ago.  The average sale price in the Northeast was $258,600, down 8.9 percent from in December 2006.

The number of houses sold in the South slipped 1.0 percent to an annualized rate of 1.97 million in December, 21 percent less than a year ago.  The average house price in the South was $173,400, down 4.1 percent from a year ago.

In the West, house sales fell 2.1 percent to an annual rate of 940,000, 24.8 percent below December 2006.  The average house price in the West was $309,800, down 11.1 percent on last year.

House sales in the Midwest dropped 1.7 percent to 1.16 million annualized, 20.5 percent less than last year.  The average sale price in the Midwest was $159,800, 3.9 percent lower than December 2006.