U. S. home sales rise to end best year since 2006

U. S. home sales rebounded in December after new regulations delayed the completion of purchases in November. And total sales in 2015 were the most in nine years.

The National Assn. of Realtors said Friday that sales of existing homes climbed 14.7% last month to a seasonally adjusted annual rate of 5.46 million. Sales had previously plummeted as the industry adapted to new mortgage disclosure rules — a temporary downturn before delayed sales were f inalized in December.

Last month’s rebound concluded a year that produced the highest annual sales total since 2006. Steady job growth and low mortgages drew more buyers into the market, causing sales and prices to climb. Americans bought about 5.26 million homes in 2015, a 6.5% increase over 2014. The median sales price rose 6.8%, to $ 222,400.

The Realtors group predicts that sales will stay f lat in 2016 and that the median price will rise more than 4%. A price increase that big would compound a problem for many would- be buyers: A rising proportion of homes are unaffordable. Home values rose last year at more than twice the pace of pay.

Despite greater demand, the housing market continues to recover slowly from the bursting of the housing bubble more than eight years ago.

Sales remain well below their peak of 7.08 million in 2005, when adjustable- rate mortgages with no money down and other risky loans fueled a buying frenzy that eventually f izzled and triggered the worst downturn since the Great Depression.

More traditional buyers returned to the market last year as cash investors pulled back. But the number of listings shrank, giving those shopping for a home fewer options and causing prices to rise.

The number of listings on the market last year fell 3.8% from a year earlier. Many current homeowners are unable to sell their properties for enough of a profit to afford another home, causing them to stay on the sidelines.

With available homes in short supply, more would- be buyers are stuck renting. The share of homeowners has slipped to 63.7% from a high of 69.2% in 2004.

Demand has continued even though sales dipped in November to an annual rate of 4.76 million. That decline resulted in large part from the Consumer Financial Protection Bureau’s introduction of guidelines in October for informing homebuyers about interest rates and fees for their mortgages.

Once lenders and buyers sorted through the changes to the paperwork, sales growth resumed. In December, sales surged in the Northeast, Midwest, South and West, with the Western states recording a 23.2% increase.