Existing-home sales declined again in January, extending the streak to 12 straight months, according to the monthly report from the National Association of Realtors.
Sales were mixed among the four major U.S. regions, as the South and West saw increases while the East and Midwest experienced declines. All four regions recorded year-over-year declines.
According to the NAR report, total existing-home sales — defined as completed transactions that include single family homes, townhomes, condominiums, and co-ops — slid 0.7% from December 2022 to a seasonally adjusted annual rate of 4 million in January. Year-over-year, sales declined by 36.9%, down from 6.34 million in January 2022.
“Home sales are bottoming out,” said NAR Chief Economist Lawrence Yun. “Prices vary depending on a market’s affordability, with lower-priced regions witnessing modest growth and more expensive regions experiencing declines."
Total housing inventory registered at the end of January was 980,000 units, up 2.1% from December and up 15.3% from a year ago, when it stood at 850,000 units, the report states. Unsold inventory sits at a 2.9-month supply at the current sales pace, unchanged from December but up from 1.6 months in January 2022.
“Inventory remains low, but buyers are beginning to have better negotiating power,” Yun said. “Homes sitting on the market for more than 60 days can be purchased for around 10% less than the original list price.”
According to the report, the median existing-home price for all housing types in January was $359,000, up 1.3% from January 2022’s price of $354,000. Prices climbed in three of the four U.S. regions, with prices falling in the West. Housing prices have increased a record 131 consecutive months, the report noted.
Properties are also remaining on the market longer. In January they stayed on the market for 33 days, compared with 26 days in December and 19 days in January 2022. Still, 54% of the homes sold in January were on the market for less than a month.
The report found that first-time buyers were responsible for 31% of sales in January, matching December but up from 27% last January.
All-cash sales made up 29% of transactions in January, up from 28% in December and 27% from last January. Individual investors or second-home buyers — who tend to make up a large portion of cash sales — purchased 16% of homes in January, unchanged from December but down from 22% a year ago.
According to the report, distressed sales — including foreclosures and short sales — made up 1% of sales in January, unchanged from both December and a year ago.
Regionally, in the Northeast existing-home sales declined 3.8% from December to an annual rate of 500,000 in January, down 35.9% from a year earlier. The median sales price was $383,000, up 0.3% from a year ago.
In the Midwest, existing-home sales dropped 5% from December to an annual rate of 960,000 in January, and slid 33.3% from last year at this time. The median sales price was $252,300, up 2.7% from last January.
Existing home sales bumped up by 1,1% in the South from December to January to an annual rate of 1.82 million, a 36.6% decrease from a year ago. The median sales price was $332,500, an increase of 3.4% from a year ago.
And in the West, existing-home sales climbed by 2.9% from December to January to an annual rate of 720,000, down 42.4% from the previous year. The median sales price was $525,200, down 4.6% from last January.
