While still lower that the past two years, existing-home sales grew from December to January, according to the latest data from the National Association of Realtors (NAR). Among the four major U.S. regions, sales accelerated in the Midwest, South and West, and remained steady in the Northeast, the association said. Year-over-year, sales improved in the West, and decreased in the Northeast, Midwest and South.
Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — rose 3.1 percent from December to a seasonally adjusted annual rate of 4 million in January. Year-over-year, sales slipped 1.7 percent (down from 4.07 million in January 2023).
“While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand,” said Lawrence Yun, NAR chief economist. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
Total housing inventory registered at the end of January was 1.01 million units, up 2 percent from December and 3.1 percent from a year ago (980,000). Unsold inventory sits at a three-month supply at the current sales pace, down from 3.1 months in December but up from 2.9 months in January 2023.
The median existing-home price for all housing types in January was $379,100, an increase of 5.1 percent from one year ago ($360,800). All four U.S. regions posted price increases.
“The median home price reached an all-time high for the month of January,” Yun said. “Multiple offers are common on mid-priced homes and many homes were still sold within a month. The elevated share of cash deals — 32 percent — indicated a market full of multiple offers and propelled by record-high housing wealth.”
According to the monthly Realtors Confidence Index, properties typically remained on the market for 36 days in January, up from 29 days in December and 33 days in January 2023.
First-time buyers were responsible for 28 percent of sales in January, down from 29 percent in December and 31percent in January 2023. NAR’s 2023 Profile of Home Buyers and sellers, released in November 2023, found that the annual share of first-time buyers was 32 percent.
All-cash sales accounted for 32 percent of transactions in January, up from 29 percent in both December and one year ago.
Individual investors or second-home buyers, who make up many cash sales, purchased 17 percent of homes in January, up from 16 percent in December and January 2023.
Distressed sales — foreclosures and short sales — represented 2 percent of sales in January, virtually unchanged from last month and the previous year.
According to Freddie Mac, the 30-year fixed rate mortgage averaged 6.77 percent as of February 15. That’s up from 6.64 percent the previous week and 6.32 percent one year ago.