US existing home sales increased 2.2% MoM in December, or an annual rate of 4.24 million (above the 4.19 million rate expected) which is the strongest since February. Sales grew 9.3% from one year ago, the largest year-over-year gain since June 2021. The median existing-home sales price grew 6.0% YoY to $404,400, the biggest annual growth since October 2022.

Total existing home inventory was 1.15 million, down -13.5% MoM, but still up 16.2% YoY. Based on the pace of sales, inventory is now at 3.3x months’ supply, down from 3.8x in November but up from 3.1x a year ago.