In January, US home sales of previously occupied houses dropped 4.9% to an annual rate of 4.08 million units despite more properties on the market. This signifies a decline from December but still marks a 2% increase compared to January the previous year. The national median sales price rose 4.8% year-over-year to $396,900, marking the 19th consecutive month of price increases.
There were 1.18 million unsold homes available at the end of January, a rise of 3.5% from December and 16.8% from the same month last year. This inventory translates to a 3.5-month supply at the current sales pace, up from the 3.2-month pace in December, yet still below the 5- to 6-month supply considered balanced.
The US housing market has struggled since 2022 due to rising mortgage rates. The average 30-year mortgage rate is now around 7%, more than double the record low of 2.65% from over four years ago. This increase raises monthly costs, particularly impacting first-time buyers. They represented 28% of sales in January, a decrease from 31% in December, and below the historic 40%.
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The slump in sales reflects a broader trend, with 2022 marking the lowest sales level in nearly 30 years. The National Association of Realtors provided data for these findings. Economists had anticipated a slightly higher sales rate of 4.11 million, according to FactSet. (This story was generated by Newser's AI chatbot. Source: the AP)
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