January sees 3.1% rise in existing home sales despite yearly dip, median price hits new January high

WASHINGTON DC – The National Association of Realtors® reported an increase in existing home sales in January, with variations observed across the major U.S. regions. Sales saw a 3.1% rise from December to a seasonally adjusted annual rate of 4.00 million. However, when compared to January 2023, sales dipped by 1.7%.

January's sales performance was bolstered by growth in the Midwest, South, and West, while the Northeast maintained consistent sales levels. Specifically, the West experienced an improvement in year-over-year sales, contrary to the Northeast, Midwest, and South declines.

The median sales price for existing homes reached $379,100, marking a 5.1% increase from January 2023 and continuing a seven-month trend of year-over-year price gains. The inventory of unsold existing homes rose to 1.01 million, reflecting a 2.0% increase from the previous month, equivalent to a 3.0-month supply at the current sales pace.

Lawrence Yun, NAR's Chief Economist, commented on the market dynamics, noting, "While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand. Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year."

The report also highlighted the median existing home price's all-time high for January and the prevalence of multiple offers on mid-priced homes. Cash deals constituted 32% of transactions, indicative of a competitive market environment.

Additional insights from the REALTORS® Confidence Index revealed that properties typically stayed on the market for 36 days in January. First-time buyers accounted for 28% of sales, a slight decrease from previous periods. All-cash sales rose to 32%, and investors or second-home buyers represented 17% of purchases.

As stated by Freddie Mac, mortgage rates averaged 6.77% as of February 15, reflecting a rise from the previous week and the same period last year.

In terms of housing types, single-family home sales increased to a seasonally adjusted annual rate of 3.6 million, with the median price at $383,500. Condominium and co-op sales remained stable at 400,000 units, with the median price at $339,400, a 5.7% increase from the previous year.