Existing-Home Sales Up 3.1% in January, NAR Says

(Image courtesy of NAR)

The National Association of Realtors, Chicago, released its report on existing-home sales for January, finding they increased 3.1% from December to a seasonally adjusted annual rate of 4 million. Year-over-year they were down 1.7%.

NAR defines existing-home sales as completed transactions that include single-family homes, townhomes, condominiums and co-ops.

“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 NAR Chief Economist Lawrence Yun. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”

Total housing inventory at the end of the month was 1.01 million units, up 2% from December and 3.1% year-over-year.

Unsold inventory is at a 3-month supply at the current sales pace, down from 3.1 months in December but up from 2.9 months this time last year.

“Existing home sales will continue to be constrained in the foreseeable future as the supply of homes remains tight and sellers continue to wait for lower mortgage rates. All eyes are on the Fed now to cut rates this summer in order to provide relief to the buyers as well as stubborn sellers. Should they do so, existing home sales should expect a better outlook for the remainder of the year,” said CoreLogic Chief Economist Selma Hepp.

The median existing-home price for all housing types was $379,100. That’s an increase of 5.1% from one year ago.