Sales of existing homes in the United States fell 4.9% compared to the previous month, according to a new report from the National Association of Realtors (NAR). .
Why is it important?
The decline in sales across the US housing market is hovering around the 7% mortgage rate mark, with prices still rising and stocks still historically low, making the country the country’s It suggests that we are still in the midst of an affordable crisis. Nevertheless, a decline in sales could also indicate that sellers across the country may feel willing to cut their asking price immediately to attract passive buyers.
What do you know
Sales of existing homes slipped in three major US regions between December and January 2024, but remained stable in the Midwest.
Existing home sales in the northeast fell 5.7% from December to 500,000 per year, and increased by 4.2% from January 2024. The median price in the northeast was $475,400, an increase of 9.5% from a year ago.
In the South, sales fell 6.2% to an annual rate of 1.83 million people, as they did in January 2024. The median price was $356,300, an increase of 3.5% from last year. In the West, existing home sales fell 7.4% last month to 750,000 per year, up 1.4% from a year ago. The median price was $614,200, an increase of 7.4% from January 2024.
In the Midwest, sales in January were 1 million annually, up 5.3% from the previous year. The median Midwest price was $290,400, an increase of 7.2% from January 2024.
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Despite a monthly step back, year-over-year sales of existing homes for the previous year rose 2% compared to the previous year, earning a fourth year profit.
Median existing home sales prices also rose compared to a year ago, up 4.8% to $396,900. Meanwhile, the average home list prices have been declining, according to data from Realtor.com. These were down 2.2% at $400,500 compared to a year ago last month.
In the same month, inventory of unsold existing homes rose 3.5% compared to December 2024, reaching 1.18 million at the end of January. This is equivalent to 3.5 months of supply.
What people are saying
NAR Chief Economist Lawrence Yun said in a statement accompanying the report: Challenge. “
Danielle Hale, Chief Economist at Realtor.com, said in a statement shared with Newsweek: This is a marked increase since September, when we generally signed contracts and mortgage interest rates ranged in the 6% range. ”
She added, but the fact that she saw growth compared to a year ago suggests that a significant number of buyers are adapting to higher mortgage rates in today’s market environment. I’m doing it (…)
“Recent sales growth has been more robust among the higher price ranges, but the data shows that the lower pricers have gained stronger profits in the list, with some differences between the two price measurements. It shows that it is promoting it.”
What’s next?
Despite the current affordable challenges facing buyers in the US housing market, Realtor.com is likely to accept that homeownership is more expensive than before. , the 2025 housing forecast predicts that it will exceed the long-term low sales in 2024.
“The weak rent growth coinciding with higher home buying costs has leaned the financial aspects of purchasing rental decisions for the majority of rentals in the US and in the larger market,” Hale said.
“But economic reasons are just one consideration for potential first-time home buyers, many of whom consider homeownership an important part of America’s dream.”
