Existing-home sales in the United States resumed tumbling in December and the median price dropped.

Home resales fell to a 4.89 million annual rate, a 2.2% decrease from November’s unrevised 5.00 million annual pace, the U.S. National Association of Realtors said Thursday. For 2007, existing home sales tumbled 13% to 5.652 million, the NAR said.

The median home price was US$208,400 in December, down 6% from US$221,600 in December 2006. The median price in November this year was $208,700. For 2007, the median price fell 1.4% to $218,900.

NAR economist Lawrence Yun stated the market is suffering “uncharacteristic weakness.”

“Home sales remain weak despite improved affordability conditions in many parts of the country,” Yun said.

The December resales level was below Wall Street expectations of a 4.98 million sales rate for previously owned homes.

Meanwhile, the number of U.S. workers filing new claims for unemployment benefits fell unexpectedly last week for a fourth-straight week, suggesting that a resilient labor market at the start of the year might keep the U.S. economy from sliding into recession.

Initial claims for jobless benefits fell 1,000 to 301,000 after seasonal adjustments in the week ended Jan. 19, the U.S. Labor Department said Thursday. That marked the fourth-straight weekly decline to a four-month low. Wall Street economists had expected a sharp increase of 19,000.

The four-week average of new claims, which economists use to smooth out weekly volatility, tumbled 14,000 to 314,750, the lowest level since Oct. 6. Claims for the week ending Jan. 12 were revised up 1,000 to 302,000.
NAR news release.