Sales of new US homes fell seven per cent in December, but were enough to sustain a full-year gain of 16.4 per cent compared with 2012.

New sales for single-family homes ran at an annual pace of 414,000 units, down from a 445,000 pace in November and 463,000 in October.

For all of 2013, the market continued to strengthen: total sales were 428,000, compared with 368,000 in 2012.

The median sales price in December was $270,200, slightly up from November. For the full year, the median price was $265,800, $20,600 above the 2012 median.

Economist Ian Shepherdson of Pantheon Macroeconomics said it was too soon to tell whether the fourth-quarter slowdown was the beginning of a larger slump for the housing sector, which has been key to the economy’s rebound.

Harsh weather in many places last month could have helped to slow sales, and the case could be similar this month.

At the same time, he noted, the rise in mortgage interest rates could be dulling sales.