Existing-home sales dipped 0.7% to a seasonally adjusted annual rate of 4.00 million in January, according to the National Association of Realtors (NAR).
That’s down 36.9% compared with January 2022. It was the 12th straight month that existing-home sales fell.
Regionally, and month-over-month, the South and West registered increases, while the East and Midwest experienced declines.
All regions recorded year-over-year declines.
NAR includes sales of single-family homes, townhomes, condominiums and co-ops with its results.
“Home sales are bottoming out,” says Lawrence Yun, chief economist for NAR, in a statement. “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 January was 980,000 units, up 2.1% from December and up 15.3% from one year ago.
Unsold inventory sits at a 2.9-month supply at the current sales pace, unchanged from December but up from 1.6 months in January 2022.
“Inventory remains low, but buyers are beginning to have better negotiating power,” Yun says. “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 January was $359,000, an increase of 1.3% from January 2022.
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 January, up from 26 days in December and 19 days in January 2022.
Fifty-four percent of homes sold in January were on the market for less than a month.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in January, unchanged from December but down from 22% in January 2022.