Kevin Sears President | Official website
Existing-home sales in the United States experienced a decline of 4.9% in January, reaching a seasonally adjusted annual rate of 4.08 million, according to data from the National Association of REALTORS (NAR). Despite this decrease, sales have risen by 2.0% compared to the same period last year, marking the fourth consecutive month of year-over-year growth.
Lawrence Yun, NAR Chief Economist, commented on the situation: "Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve. When combined with elevated home prices, housing affordability remains a major challenge."
The median existing-home price increased by 4.8% from January 2024 to $396,900. Inventory levels rose by 3.5% from December to reach 1.18 million units at the end of January, equivalent to a supply lasting 3.5 months at the current sales pace.
Yun added that "more housing supply allows strongly qualified buyers to enter the market," but noted that both increased inventory and lower mortgage rates are essential for many consumers aiming to purchase homes or become first-time homeowners.
Regionally, existing-home sales declined in three major U.S. regions while remaining stable in the Midwest. Year-over-year sales saw improvements in three regions but remained unchanged in the South.
In terms of specific property types, single-family home sales dropped by 5.2%, while condominium and co-op sales decreased by 2.4%. Median prices for these categories also saw increases over last year’s figures.
First-time buyers accounted for 28% of all transactions in January—a slight decrease from December's figure—while cash sales made up 29% of all transactions during this period.
Freddie Mac reported that as of February 20th, the average rate for a 30-year fixed-rate mortgage was at 6.85%.
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