In January, existing home closings decreased 4.9% from December to a 4.08 million-unit annualized pace, slightly missing projections. However, sales have risen year-over-year for four consecutive months, and inventory saw a modest uptick.
What’s the bottom line?
This was a strong January report, considering it measured home shopping from November and December when rates were elevated. Plus, January is typically a slow time for the housing market. “Things are looking up,” according to the National Association of REALTORS® Chief Economist Lawrence Yun, who expects homesales to continue rising as rates and prices stabilize. While January inventory improved to 1.18 million units, it remains tight compared to pre-pandemic levels. Plus, only 829,000 ofthose were active listings; the rest were under contract and not truly available. This ongoing supply shortage, combined with pent-up buyer demand, bodes well for continued home price appreciation.