Existing-home sales waned for the 12th consecutive month to a seasonally adjusted annual rate of $4M. Sales slipped 0.7% from Dec. 2022 and 36.9% from the previous year
Key takeaways:
- The median existing-home sales price increased 1.3% from one year ago to $359,000.
- The inventory of unsold existing homes grew from the prior month to 980,000 at the end of Jan., or the equivalent of 2.9 months’ supply at the current monthly sales pace.
- Existing-home sales in the South rose 1.1% in Jan. from Dec. to an annual rate of 1.82 million, a 36.6% decrease from the prior year. The median price in the South was $332,500, an increase of 3.4% from one year ago.
Cookeville – Existing-home sales fell for the twelfth straight month in Jan., according to the National Association of Realtors. Month-over-month sales were mixed among the four major U.S. regions, as the South and West registered increases, while the East and Midwest experienced declines. Existing-home sales in the South rose 1.1% in Jan. from Dec. to an annual rate of 1.82 million, a 36.6% decrease from the prior year.
The median price in the South was $332,500, an increase of 3.4% from one year ago. All regions recorded year-over-year declines.
Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, slid 0.7% from Dec. 2022 to a seasonally adjusted annual rate of 4M in Jan.
Year-over-year, sales retreated 36.9% (down from 6.34 million in Jan. 2022).
“Home sales are bottoming out,” said NAR Chief Economist Lawrence Yun. “Prices vary depending on a market’s affordability, with lower-priced regions witnessing modest growth and more expensive regions experiencing declines.”
Total housing inventory registered at the end of Jan. was 980,000 units, up 2.1% from Dec. and 15.3% from one year ago (850,000). Unsold inventory sits at a 2.9-month supply at the current sales pace, unchanged from Dec. but up from 1.6 months in Jan. 2022.
“Inventory remains low, but buyers are beginning to have better negotiating power,” Yun added. “Homes sitting on the market for more than 60 days can be purchased for around 10% less than the original list price.”
The median existing-home price for all housing types in Jan. was $359,000, an increase of 1.3% from Jan. 2022 ($354,300), as prices climbed in three out of four U.S. regions while falling in the West. This marks 131 consecutive months of year-over-year increases, the longest-running streak on record. Properties typically remained on the market for 33 days in Jan., up from 26 days in Dec. and 19 days in Jan. 2022. 54% of homes sold in Jan. were on the market for less than a month.
First-time buyers were responsible for 31% of sales in Jan., identical to Dec. but up from 27% in Jan. 2022. NAR’s 2022 Profile of Home Buyers and Sellers, released in Nov. 2022, found that the annual share of first-time buyers was 26%, the lowest since NAR began tracking the data.
All-cash sales accounted for 29% of transactions in Jan., up from 28% in Dec. and 27% in Jan. 2022. Individual investors or second homebuyers, who make up many cash sales, purchased 16% of homes in Jan., unchanged from Dec. but down from 22% in Jan. 2022.
Distressed sales, foreclosures and short sales, represented 1% of sales in Jan., identical to last month and one year ago. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.32% as of Feb. 16. That’s up from 6.12% from the previous week and 3.92% one year ago.
Single-family home sales declined to a seasonally adjusted annual rate of 3.59 million in Jan., down 0.8% from 3.62 million in Dec. and 36.1% from one year ago. The median existing single-family home price was $363,100 in Jan., up 0.7% from Jan. 2022. Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 410,000 units in Jan., unchanged from Dec. but down 43.1% from the previous year.
The median existing condo price was $320,000 in Jan., an annual increase of 5.2%.
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