Existing-home sales fall in January
Existing-home sales fell 1.2% to a seasonally adjusted annual rate of 4.94 million in January, the National Association of Realtors (NAR) reported.
Sales are down 8.5% to a pace of 4.94 million from 5.4 million in January 2018.
Total housing inventory at the end of January increased to 1.59 million, up from 1.53 million existing homes available for sale in December, and represents an increase from 1.52 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.7 months in December and from 3.4 months in January 2018.
“Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months,” said Lawrence Yun, chief economist of the NAR.
The median existing-home price for all housing types in January was $247,500, up 2.8% percent from January 2018 ($240,800). January’s price increase marks the 83rd straight month of year-over-year gains.
But Yun said that median home price growth is the slowest since February 2012. “Lower mortgage rates from December 2018 had little impact on January sales, however, the lower rates will inevitably lead to more home sales.”
Total housing inventory at the end of January increased to 1.59 million, up from 1.53 million existing homes available for sale in December, and represents an increase from 1.52 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.7 months in December and from 3.4 months in January 2018.
While total inventory grew (on a year-over-year basis) for the sixth straight month, Yun says the market is still suffering from an inventory shortage.
“In particular, the lower end of the market is experiencing a greater shortage, and more home construction is needed,” said Yun. “Taking steps to lower construction costs would be a tremendous help. Local zoning ordinances should also be reformed, while the housing permitting process must be expedited; these simple acts would immediately increase homeownership opportunities and boost local economies.”
Single-family home sales are at a seasonally adjusted annual rate of 4.37 million in January, down from 4.45 million in December and 8.4% below the 4.77 million sales pace from a year ago. The median existing single-family home price was $249,400 in January, up 3.1% from January 2018.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 570,000 units in January, up 3.6% from last month and down 9.5% from a year ago. The median existing condo price was $233,000 in January, which is up 0.1% from a year ago. The median price in the Northeast was $270,000, up 0.4% from January 2018.
Regionally, January existing-home sales in the Northeast increased 2.9% to an annual rate of 700,000, 1.4% below a year ago. The median price in the Northeast was $270,000, which is up 0.4% from January 2018.
Sales in the Midwest fell 2.5% to an annual rate of 1.16 million in January, down 7.9% overall from a year ago. The median price in the Midwest was $189,700, which is up 1.4% from last year.
Existing-home sales in the South dropped 1.0% to an annual rate of 2.08 million in January, down 8.4% from last year. The median price in the South was $214,800, up 2.5% from a year ago.
Existing-home sales in the West declined 2.9% to an annual rate of 1 million in January, 13.8% below a year ago. The median price in the West was $374,600, up 2.9% from January 2018.
Sales are down 8.5% to a pace of 4.94 million from 5.4 million in January 2018.
Total housing inventory at the end of January increased to 1.59 million, up from 1.53 million existing homes available for sale in December, and represents an increase from 1.52 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.7 months in December and from 3.4 months in January 2018.
“Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months,” said Lawrence Yun, chief economist of the NAR.
The median existing-home price for all housing types in January was $247,500, up 2.8% percent from January 2018 ($240,800). January’s price increase marks the 83rd straight month of year-over-year gains.
But Yun said that median home price growth is the slowest since February 2012. “Lower mortgage rates from December 2018 had little impact on January sales, however, the lower rates will inevitably lead to more home sales.”
Total housing inventory at the end of January increased to 1.59 million, up from 1.53 million existing homes available for sale in December, and represents an increase from 1.52 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.7 months in December and from 3.4 months in January 2018.
While total inventory grew (on a year-over-year basis) for the sixth straight month, Yun says the market is still suffering from an inventory shortage.
“In particular, the lower end of the market is experiencing a greater shortage, and more home construction is needed,” said Yun. “Taking steps to lower construction costs would be a tremendous help. Local zoning ordinances should also be reformed, while the housing permitting process must be expedited; these simple acts would immediately increase homeownership opportunities and boost local economies.”
Single-family home sales are at a seasonally adjusted annual rate of 4.37 million in January, down from 4.45 million in December and 8.4% below the 4.77 million sales pace from a year ago. The median existing single-family home price was $249,400 in January, up 3.1% from January 2018.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 570,000 units in January, up 3.6% from last month and down 9.5% from a year ago. The median existing condo price was $233,000 in January, which is up 0.1% from a year ago. The median price in the Northeast was $270,000, up 0.4% from January 2018.
Regionally, January existing-home sales in the Northeast increased 2.9% to an annual rate of 700,000, 1.4% below a year ago. The median price in the Northeast was $270,000, which is up 0.4% from January 2018.
Sales in the Midwest fell 2.5% to an annual rate of 1.16 million in January, down 7.9% overall from a year ago. The median price in the Midwest was $189,700, which is up 1.4% from last year.
Existing-home sales in the South dropped 1.0% to an annual rate of 2.08 million in January, down 8.4% from last year. The median price in the South was $214,800, up 2.5% from a year ago.
Existing-home sales in the West declined 2.9% to an annual rate of 1 million in January, 13.8% below a year ago. The median price in the West was $374,600, up 2.9% from January 2018.