Existing Home Sales rose 3.1% from December to January to a 4-million-unit annualized pace, with December’s sales also revised higher per the National Association of REALTORS® (NAR). When compared to January 2023, sales were down 1.7%.
What’s the bottom line? This report measures closings on existing homes in January and likely reflects people shopping for homes in November and December, when rates backed off from their peak. NAR’s Chief Economist, Lawrence Yun, added that “listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
Any increase in listings is a positive sign for much needed supply. There were just 1.01 million homes available for sale at the end of January, which is below healthy levels at just a 3 months’ supply of homes at the current sales pace. Meanwhile, demand for homes remains strong, with Yun adding that “multiple offers are common on mid-priced homes, and many homes were still sold within a month.”
This ongoing dynamic of tight supply and strong demand is a key reason why home values continue to rise and why now provides great opportunities to take advantage of appreciation gains.