Good news for homeowners: The national median existing single-family home price grew nearly 7 percent to $222,700 in the fourth quarter of 2015, compared with the same time last year, according to the National Association of Realtors. Prices had increased 5.4 percent in the third quarter compared with a year earlier.
That price bump came despite the fact that the pace of sales slowed. Total existing home sales, including single-family properties and condos, declined 5.4 percent to a seasonally adjusted annual pace of 5.18 million, down from nearly 5.5 million in the third quarter.
If those trends seem contradictory, they can be explained by the fact that the total amount of housing stock is growing very slowly now. That’s how prices can increase despite the slackening of demand.