Existing-home sales rose in January, making a notable move upward following a previous month where sales declined, according to the National Association of Realtors. On a month-over-month basis, each of the four major U.S. regions experienced an increase in sales in January. However, year-over-year, activity was mixed as two regions reported sagging sales, another watched sales increase and a fourth region remained flat.
Total existing-home sales (completed transactions that include single-family homes, townhomes, condominiums and co-ops) climbed 6.7% from December to a seasonally adjusted annual rate of 6.50 million in January. Year-over-year, sales fell 2.3%.
“Buyers were likely anticipating further rate increases and locking-in at the low rates, and investors added to overall demand with all-cash offers,” said Lawrence Yun, NAR’s chief economist. “Consequently, housing prices continue to move solidly higher.”
Total housing inventory at the end of January amounted to 860,000 units, down 2.3% from December and down 16.5% from one year ago. Unsold inventory sits at a 1.6-month supply at the current sales pace, down from 1.7 months in December and from 1.9 months in January 2021.
“The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low,” Yun said.
According to Yun, homes priced at $500,000 and below are disappearing, while supply has risen at the higher price range. He noted that such increases will continue to shift the mix of buyers toward high-income consumers.
“There are more listings at the upper end — homes priced above $500,000 — compared to a year ago, which should lead to less hurried decisions by some buyers,” Yun added. “Clearly, more supply is needed at the lower end of the market in order to achieve more equitable distribution of housing wealth.”
The median existing-home price for all housing types in January was $350,300, up 15.4% from January 2021, as prices rose in each region. This marks 119 consecutive months of year-over-year increases, the longest-running streak on record.
Properties typically remained on the market for 19 days in January, equal to days on market for December, and down from 21 days in January 2021. Seventy-nine percent of homes sold in January 2022 were on the market for less than a month.
First-time buyers were responsible for 27% of sales in January, down from 30% in December and down from 33% in January 2021.
