January showed positive gains in existing-home sales
January saw a jump in existing-home sales as the month saw a lull in mortgage rates and a bump in housing inventory, according to the latest report from the National Association of Realtors® (NAR). Three of the four regions saw home sales rise, while the Northeast held steady from the month before. Overall, existing home sales were up 3.1% in January from December.
"While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand," said NAR Chief Economist Lawrence Yun. "Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year."
Home prices reach new January high
Home prices continue to go up, which is still putting a strain on housing affordability for many buyers. The good news is, however, that the number of homes for sale, otherwise known as housing inventory, is trending up. This could have an effect on home prices, helping them moderate their growth. Let’s take a look at home price trends:
Month | Median existing-home price | Month-over-month | Year-over-year |
$359,000 | Down 2.2% | Up 1.3% | |
$363,000 | Up 1.1% | Down 0.2% | |
$375,700 | Up 3.5% | Down 0.9% | |
$388,800 | Up 3.5% | Down 1.7% | |
$396,100 | Up 1.9% | Down 3.1% | |
$410,200 | Up 3.6% | Down 0.9% | |
$406,700 | Down 0.9% | Up 1.9% | |
$407,100 | Up 0.1% | Up 3.9% | |
$394,300 | Down 3.1% | Up 2.8% | |
$391,800 | Down 0.6% | Up 3.4% | |
$387,600 | Down 1.1% | Up 4.0% | |
$382,600 | Down 1.3% | Up 4.4% | |
January | $379,100 | Down 0.9% | Up 5.1% |
When home prices go up, many potential homebuyers face challenges, especially when it comes to the down payment. The good news is that we offer OneDown, which can help you buy a home with as little as a one percent down payment.
"The median home price reached an all-time high for the month of January," Yun points out. "Multiple offers are common on mid-priced homes, and many homes were still sold within a month. The elevated share of cash deals – 32% – indicated a market full of multiple offers and propelled by record-high housing wealth."
Total housing inventory registered a month-over-month (up 2.0%) and year-over-year gain (up 3.1%). It stood at 1.01 million units for January. For first-time homebuyers, more homes on the market can make it easier to find what they’re looking for while cutting down on bidding wars.
This suggests that now may be a good time to look for a home before the traditional spring rush of home shoppers. "More listings will help Americans move," said NAR President Kevin Sears.
Trends depend on where you live
Activity was up throughout the country, with just one region not showing a positive change. Even the region that didn’t increase, the Northeast, held steady.
Here’s how the numbers broke out by region:
- Northeast: Unchanged at 0.0%, an annual rate of 480,000, down 5.9% from January 2023
- Midwest: Up 2.2% to an annual rate of 950,000, down 3.1% from January 2023
- South: Up 4.0% to an annual rate of 1,840,000, down 1.6% from January 2023
- West: Up 4.3% with an annual rate of 730,000, down 2.8% from January 2023
First-time homebuyers were responsible for 28% of sales in January, down from 29% in December 2023 and 31% last year. All-cash sales made up 32% of transactions in January, up from 29% the month before. This shows how competitive the market is right now. PowerBid Approval can help you compete with cash and show sellers and agents that you’re serious about purchasing your home.
Last month’s existing-home sales number show us just how important it is to work with a local loan officer who can help you prepare to compete in your local market.
Source: https://www.nar.realtor/newsroom/existing-home-sales-rose-3-1-in-january
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