Existing-home sales increased in January, rising 3.1% compared with December but down 1.7% compared with January 2023, according to the National Association of Realtors (NAR).
Month over month, home sales accelerated in the Midwest, South and West, and remained steady in the Northeast.
Year over year, sales improved in the West, but decreased in the Northeast, Midwest and South.
As of the end of the month, home sales were at a seasonally adjusted annual rate of 4.00 million – down from 4.07 million in January 2023.
“While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand,” says Lawrence Yun, chief economist for NAR, in a statement. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
At the end of January, there were about 1.01 million existing homes available for sale, an increase of 2% compared with December and up 3.1% from one year ago.
That’s about a three-month supply at the current sales pace, down from 3.1 months in December but up from 2.9 months in January 2023.
The median existing-home price for all housing types in January was $379,100, an increase of 5.1% from one year ago.
“The median home price reached an all-time high for the month of January,” Yun says. “Multiple offers are common on mid-priced homes, and many homes were still sold within a month. The elevated share of cash deals – 32 percent – indicated a market full of multiple offers and propelled by record-high housing wealth.”
Properties typically remained on the market for 36 days in January, up from 29 days in December and 33 days in January 2023.
Distressed sales – foreclosures and short sales – represented 2% of sales in January, virtually unchanged from the previous month and the previous year.
Photo: Ian MacDonald