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Existing Home Sales Slide In January, Prices Jump As Inventories Slump

Existing Home Sales Slide In January, Prices Jump As Inventories Slump

Existing Home Sales Slide In January, Prices Jump As Inventories Slump

Following December’s surprisingly large surge, existing home sales were expected to slow in January and it did but less than expected due to an upward revision to December.

Dec existing home sales was revised from +3.6% to +3.9% MoM which cause the January move to modestly beat expectations but still fell (-1.3% MoM vs -1.8% MoM expected) to a 5.46 million annual rate…

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Source: Bloomberg

The median existing-home price for all housing types in January was $266,300, up 6.8% from January 2019 ($249,400), as prices increased in every region. December’s price increase marks 95 straight months of year-over-year gains.

“Mortgage rates have helped with affordability, but it is supply conditions that are driving price growth,” Lawrence Yun, NAR’s chief economistsaid.

Total housing inventory at the end of January totaled 1.42 million units, up 2.2% from December, but down 10.7% from one year ago (1.59 million).

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The housing inventory level for January is the lowest level since 1999. Unsold inventory sits at a 3.1-month supply at the current sales pace, up from the 3.0-month figure recorded in December and down from the 3.8-month figure recorded in January 2019.

Yun finds the outlook for 2020 home sales promising despite the drop in January.

“Existing-home sales are off to a strong start at 5.46 million.” Yun said.

“The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales.”

Single-family home sales sat at a seasonally-adjusted annual rate of 4.85 million in January, down from 4.91 million in December, but up 9.7% from a year ago. The median existing single-family home price was $268,600 in January 2020, up 6.9% from January 2019.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 610,000 units in January, down 1.6% from December but 8.9% higher than a year ago. The median existing condo price was $248,100 in January, an increase of 5.7% from a year ago.

Regional breakdown

Sequentially, January sales only increased in the Midwest, while year-over-year sales are up in each of the four regions. Median home prices in all regions increased from one year ago, with the Northeast region showing the strongest price gain.

  • January 2020 existing-home sales in the Northeast saw no movement, recording an annual rate of 730,000, which is up 7.4% from a year ago. The median price in the Northeast was $312,100, up 11.5% from January 2019.

  • Existing-home sales increased 2.4% in the Midwest to an annual rate of 1.29 million, which is up 8.4% from a year ago. The median price in the Midwest was $200,000, a 5.4% increase from last January.

  • Existing-home sales in the South grew 0.4% to an annual rate of 2.38 million in January, up 11.7% from a year ago. The median price in the South was $229,900, a 6.3% increase from this time last year.

  • Existing-home sales in the West fell 9.4% to an annual rate of 1.06 million in January, an 8.2% increase from a year ago. The median price in the West was $393,800, up 5.2% from January 2019.

And of course, with interest rates crashing to record lows, one would imagine mortgage rate collapses will spark renewed interest in at worst refis, and at best more buying.


Tyler Durden

Fri, 02/21/2020 – 10:09Existing Home Sales Slide In January, Prices Jump As Inventories Slump

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