Sales of existing homes in December 2006 decreased 0.8 percent compared to the month prior, according to a report issued today by the National Association of Realtors (NAR). At the same time, the inventory of unsold homes also dipped 7.9 percent - representing a 6.8 month supply.

"The decline in existing home sales is surprising, given the recent run of positive real estate news," said Bob Walters, chief economist for Loans. "Today's news raises the importance of tomorrow's new home sales report. If new home sales dip as well, this could signal that the market has not hit complete bottom and the recovery may be delayed."

Publish Date: 01/25/2007