U.S. Existing-Home Sales Drop 8.4 Percent

U.S. existing-home sales fell in December, closing a year marked by the biggest demand slump for existing homes in 17 years, a U.S. realty group said Thursday.

Sales fell 0.8 percent in December and 8.4 percent for the year, the National Association of Realtors said.

The yearly drop was the biggest since 1989, when existing-home sales fell 14.8 percent.

Even with the sales drop, the median price of an existing home rose 1.1 percent to $222,000 from $219,600 in 2005, the association said.

The median home price had risen 12.4 percent in 2005 from 2004.

Midwest home sales were the strongest in December, rising 4.3 percent. Western U.S. home sales were the weakest, falling 9.1 percent. Sales increased 0.8 percent in the South and fell 2.8 percent in the Northeast.