U.S. existing home sales fell sharply in January, dropping 8.4% from December to an annualized pace of 3.91 million, the steepest monthly decline since early 2022 and 4.4% lower than a year ago. Sluggish demand reflects high home prices, limited supply, and weaker consumer confidence, which the National Association of Realtors’ chief economist described as “a new housing crisis.”
Despite slower sales, prices remain elevated. The median home price rose 0.9% year over year to $396,800, a record high for January, supported by tight inventory. While listings were up 3.4% from a year ago, supply still equates to just a 3.7 month supply, well below the six months considered balanced.
Homes are taking longer to sell, and activity is strongest at the high end, with only the $1 million plus segment seeing year-over-year growth. Lower priced homes saw the biggest declines. First time buyers made up a slightly larger share of purchases, but many potential buyers remain sidelined by affordability and limited options.
SghettiAndButter on
Does anyone wonder what first time home buyers are gonna be up against in like 20-30 years if we continue to see average home prices increase faster than average wages?
2 Comments
U.S. existing home sales fell sharply in January, dropping 8.4% from December to an annualized pace of 3.91 million, the steepest monthly decline since early 2022 and 4.4% lower than a year ago. Sluggish demand reflects high home prices, limited supply, and weaker consumer confidence, which the National Association of Realtors’ chief economist described as “a new housing crisis.”
Despite slower sales, prices remain elevated. The median home price rose 0.9% year over year to $396,800, a record high for January, supported by tight inventory. While listings were up 3.4% from a year ago, supply still equates to just a 3.7 month supply, well below the six months considered balanced.
Homes are taking longer to sell, and activity is strongest at the high end, with only the $1 million plus segment seeing year-over-year growth. Lower priced homes saw the biggest declines. First time buyers made up a slightly larger share of purchases, but many potential buyers remain sidelined by affordability and limited options.
Does anyone wonder what first time home buyers are gonna be up against in like 20-30 years if we continue to see average home prices increase faster than average wages?