Following a December decline, existing-home sales were up nationally in January, according to the National Association of Realtors.
NAR’s monthly report reveals that total existing-home sales climbed 6.7 percent from December 2021 to a seasonally adjusted annual rate of 6.50 million in January 2022. Year-over-year, sales fell 2.3 percent.
Total housing inventory at the end of January amounted to 860,000 units, down 2.3 percent from a month prior and down 16.5 percent annually. According to NAR, unsold inventory sits at a 1.6-month supply at the current sales pace, down from 1.7 months in December and from 1.9 months in January 2021.
“Buyers were likely anticipating further rate increases and locking-in at the low rates, and investors added to overall demand with all-cash offers. Consequently, housing prices continue to move solidly higher,” said Lawrence Yun, NAR’s chief economist. “The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low.
“There are more listings at the upper end—homes priced above $500,000—compared to a year ago, which should lead to less hurried decisions by some buyers,” Yun continued. “Clearly, more supply is needed at the lower-end of the market in order to achieve more equitable distribution of housing wealth.”
Continuing an unprecedented streak, the median existing-home price increased 15.4 percent in January (compared to January 2021) to a price of $350,300. This marks 119 consecutive months of year-over-year increases, the longest-running streak on record.
Existing-home sales in the West increased 4.1 percent from December 2021. The median price in the West was $505,800, up 8.8 percent from January 2021. Existing-home sales in the Northeast grew 6.8 percent in January, with a median price of $382,800, up 6 percent from one year ago.
Existing-home sales in the Midwest rose 4.1 percent from the prior month, while the median price in the region was up 7.8 percent annually to $245,900. Finally, sales in the South were up 9.3 percent in January compared the prior month. The median price in the South was $312,400, up 18.7 percent year-over-year.