by Sales rose 3.1% from December, a slight rebound that could continue into the spring
WASHINGTON — January existing home sales fell 1.7% from last year but were up 3.1% from December, a slight rebound to the start of the year that many in the industry hope continues into the warmer spring months.
According to data released by the National Association of Realtors Thursday, Feb. 22, January sales of single-family homes, townhomes, condominiums and co-ops totaled a seasonally adjusted 4 million, down from 4.07 million in January 2023. Year-over-year sales rose in the West, but declined in the Northeast, Midwest and South. Monthly gains from December took place in the Midwest, South and West and were level in the Northeast.
The year-over-year decline is the lowest percentage change in the past year, continuing an overall percentage decrease seen throughout much of 2023.
The report also noted that the median existing home sale price rose 5.1% from $360,800 in January 2023 to $379,100, which was the seventh consecutive month of year-over-year price gains, with all four regions of the country posting price increases.
“The median home price reached an all-time high for the month of January,” said NAR Chief Economist Lawrence Yun. “Multiple offers are common on midpriced homes, and many homes were still sold within a month.”
Yun added that an elevated amount of cash deals — 32% — “indicated a market full of multiple offers and propelled by record-high housing wealth.”
Meanwhile, inventory of unsold existing homes rose 2% from December to 1.01 million units at the end of January. This is the equivalent of a three-month supply based on the monthly pace of sales and up from 2.9 months in January 2023 and down from 3.1 months in December. The number of unsold homes also was up 3.1% from the 980,000 reported 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,” Yun said. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
Single-family home sales totaled 3.6 million in January, which was down 1.4% from January 2023, but up 3.4% from 3.48 million in December. The median existing single-family home price was $383,500, up 5% from January 2023.
Existing condominium and co-op sales in January were down 4.8% from the 420,000 units sold in January 2023, but unchanged from December. The median price in this segment was $339,400, up 5.7% from $321,100 in January 2023.
By region, activity was as follows:
+ In the Northeast there were 480,000 units sold in January, which was down 5.9% from January 2023 but unchanged from December. The median price in this region was $434,300, up 10.1% from January 2023.
+ In the Midwest, existing home sales totaled 950,000 in January, down 3.1% from January 2023, but up 2.2% from December. Here the median price was $271,700, up 7.6% from January 2023.
+ In the South, existing home sales totaled 1.84 million, down 1.6% from January 2023 but up 4% from December. The median price was $345,100, up 4.1% from January 2023.
+ In the West, there were 730,000 homes sold in January, up 2.8% from January 2023 and up 4.3% from December. Here the median price was $572,100, up 6.3% from January 2023.
Other highlights of the report were as follows:
+ First-time buyers were responsible for 28% of sales in January, down from 31% from January 2023 and down from 29% in December. According to the NAR’s Profile of Home Buyers and Sellers released in November, the annual share of first-time buyers was 32%.
+ All cash sales accounted for 32% of transactions in January, up from 29% in January and December 2023. Individual investors or second-home buyers that make up many cash sales, purchased 17% of existing homes in January, up from 16% in January and December 2023.
+ Distressed sales, including foreclosures and short sales, accounted for 2% of sales in January, which the NAR said was unchanged from January and December 2023.
