Existing-Home Sales Fell 8.4% in January
What happened
A new report from the National Association of Realtors shows that existing-home sales decreased by 8.4% in January. Despite the drop in sales volume, the report also noted that housing affordability improved for the seventh consecutive month.
Why it matters
- The 8.4% month-over-month decrease in sales marks the sharpest monthly drop in nearly four years, bringing the seasonally adjusted annual rate to 3.91 million units. On a year-over-year basis, sales were down 4.4%. - NAR Chief Economist Dr. Lawrence Yun suggested that below-normal temperatures and above-normal precipitation in January may have contributed to the decline in sales. - Despite the drop in sales, the median existing-home price rose to $396,800, a 0.9% increase from January of the previous year and a new high for the month of January. This marks the 31st consecutive month of year-over-year price increases. - Total housing inventory at the end of January was 1.22 million units, which is a 3.7-month supply at the current sales pace. This is up from a 3.5-month supply in both December and a year ago. - The share of first-time homebuyers increased to 31% in January, up from 29% in December and 28% one year ago. All-cash sales accounted for 27% of transactions, a slight decrease from 28% in the prior month and 29% in January of the previous year. - Properties typically remained on the market for 46 days in January, an increase from 39 days in December and 41 days in January of the prior year. - All four major U.S. regions saw a decline in sales month-over-month and year-over-year. The West experienced the most significant drop in sales compared to the previous month. - The improved housing affordability is attributed to wage gains outpacing the growth of home prices and mortgage rates being lower than they were a year ago.
Key numbers
- A new report from the National Association of Realtors shows that existing-home sales decreased by 8.4% in January.
- - The 8.4% month-over-month decrease in sales marks the sharpest monthly drop in nearly four years, bringing the seasonally adjusted annual rate to 3.91 million units.
- On a year-over-year basis, sales were down 4.4%.
- Despite the drop in sales, the median existing-home price rose to $396,800, a 0.9% increase from January of the previous year and a new high for the month of January.
What happens next
- Lawrence Yun suggested that below-normal temperatures and above-normal precipitation in January may have contributed to the decline in sales.
Quick answers
What happened in Existing-Home Sales Fell 8.4% in January?
A new report from the National Association of Realtors shows that existing-home sales decreased by 8.4% in January. Despite the drop in sales volume, the report also noted that housing affordability improved for the seventh consecutive month.
Why does Existing-Home Sales Fell 8.4% in January matter?
The 8.4% month-over-month decrease in sales marks the sharpest monthly drop in nearly four years, bringing the seasonally adjusted annual rate to 3.91 million units. On a year-over-year basis, sales were down 4.4%. NAR Chief Economist Dr. Lawrence Yun suggested that below-normal temperatures and above-normal precipitation in January may have contributed to the decline in sales. Despite the drop in sales, the median existing-home price rose to $396,800, a 0.9% increase from January of the previous year and a new high for the month of January. This marks the 31st consecutive month of year-over-year price increases. Total housing inventory at the end of January was 1.22 million units, which is a 3.7-month supply at the current sales pace. This is up from a 3.5-month supply in both December and a year ago. The share of first-time homebuyers increased to 31% in January, up from 29% in December and 28% one year ago. All-cash sales accounted for 27% of transactions, a slight decrease from 28% in the prior month and 29% in January of the previous year. Properties typically remained on the market for 46 days in January, an increase from 39 days in December and 41 days in January of the prior year. All four major U.S. regions saw a decline in sales month-over-month and year-over-year. The West experienced the most significant drop in sales compared to the previous month. The improved housing affordability is attributed to wage gains outpacing the growth of home prices and mortgage rates being lower than they were a year ago.
