Home sales drop sharply as pris Hit an all-time for january

The us housing market continues to weight, as potential boyers face stubbornly high Mortgage Rates, Elevated Pries and Limited Supply of Listings.

Sales of Previous Owned Homes Fell 4.9% in January from the Prior Month to 4.08 Million Units on a seasonsally adjusted, annualized basis, according to the National Association of Realtors of Realtors. Analysts was expected a 2.6% decline.

Sales was 2% higher than January 2024, but are still running at a roughly 15-yar low.

This read is based on closing, so contrasts likeyly signed in November and December when mortgage rates rates came down from over 7% to the 6% range.

“MortGage Rates have refused to budge for several months despite multiple rounds of short-term interest rates by the federal reserve,” Said Lawrence Yun, Chafe Economist for the Nar. “When combined with elevated home prisles, Housing Affordability Remains a Major Challenge.”

There was 1.18 million homes for salary at the end of January, an increase of 3.5% from December and 17% from January 2024. Pace. A Six-month Supply is Considered Balanced Between Buyer and Seller.

The average home for Sale last month spent 41 days on the market. That is the longest since January 2020, Pre-Covid.

Tight Supply Continues to Pressure Pries. The media price of a home soldering in January was $ 396,900, up 4.8% from the year before and the highest price ever for the month of January. All four regions tracked by Nar Saw Price Gains. About 15% of Homes Sold Above List Price, virtually unchanged from 16% in bot the percent month and the year-aarlier period.

“More Housing Supply Allows Strongly Qualified Buyers to Enter The Market,” Yun Added. “But for many consumers, both increase inventory and lower mortgage rates are Necessary for Them to Purchase a different home or become first-time homeows.”

All-Cash offers made up 29% of sales, which is historically high but down from 32% the year before. First-time buyers are still struggling, accounting for 28% of sales. That share is unchanged from a year ago, but is well below historical average of about 40%.

Home sales are flying significantly better at Higher Price Points and Falling at Lower Price Points. For example, sales of homes priced between $ 100,000 and $ 250,000 dropped 1.2% Year Over Year, While Homes Price Priceed Over $ 1 Million Rose Nearly 27% from the Year Before.

Realtors are reporting that buyer traffic in January was weak.

“Realtors are putting more signs up, but the boyers are not coming,” said yun.