Median price increased from $302,800 to $369,000

Broward County home sales dropped 41 percent, while the median price increased from $302,800 to $369,000.Nationally, purchases declined to a 6.6 million annual rate from November's 7 million. Sales, which have been slowing from the record monthly pace reached in June, still finished 2005 at an all-time high.While economists forecast a gradual decline in sales, December's slump raises the risk the slowdown could accelerate and become an even bigger drag on the economy this year.
The drop puts Federal Reserve policymakers on notice that more interest rate increases may not be necessary, according to Christopher Low."Higher rates at this point risk turning the gentle decline of the second half of 2005 into a housing rout in 2006," said Low, chief economist at FTN Financial in New York. Recent housing reports "make the most compelling argument for the Fed to stop raising the overnight rate."
A rise in the supply of homes relative to sales, less home price appreciation and higher mortgage rates also limit may refinancing, which has helped drive spending and economic growth, economists said.— Bloomberg News contributed to this report.