Existing-Home Sales Retreat

(Illustration courtesy of National Association of Realtors)

Existing-home sales fell 4.9% in January to a seasonally adjusted annual rate of 4.08 million in January, the National Association of Realtors reported Friday.  

The report noted sales slipped in the Northeast, Midwest and Western U.S. and held steady in the Midwest.

Year-over-year, sales improved 2.0% (up from 4 million in January 2024).

“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” NAR Chief Economist Lawrence Yun said. “When combined with elevated home prices, housing affordability remains a major challenge.”

Total housing inventory registered at the end of January equaled 1.18 million units, up 3.5% from December and 16.8% from a year ago. Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in December and 3.0 months in January 2024. Yun noted more housing supply allows strongly qualified buyers to enter the market. “But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners,” he said.