| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Annual Rate | 4.100M | 3.930M to 4.200M | 4.000M | 4.02M | 4.030M |
| Month over Month | -0.7% | -1.5% | -2.2% | ||
| Year over Year | -36.9% | -34.0% | -33.8% |
Highlights
The NAR data on sales of existing homes show a 0.7 percent decline to 4.00 million units in January after a small upward revision to 4.03 million units in December. It is down 36.9 percent compared to a year ago. The January reading is in line with the consensus of 4.10 million units in an Econoday survey. The NAR report noted that home resales are down for a 12th straight month, but the decline appears to be bottoming out. The report included annual revisions.
Sales of single-family existing homes are down 0.8 percent to 3.59 million units in January after 3.62 million units in December and off 36.1 percent compared to a year ago. Resales of condos and co-ops are unchanged at 410,000 in January from December, and 43.1 percent from a year earlier.
The supply of homes available for sale is 980,000 (unadjusted) in January, slightly higher than the 960,000 in December. The months' supply of homes available for sale is unchanged at 2.9 months' worth in January from December and above 1.6 months' worth in January 2022. The median home price is down 2.0 percent to $359,000 in January after $366,500 in December, and up only 1.3 percent compared to the year-ago month.
First-time homebuyers are returning to the market with better supply and moderation in prices, and during a dip in mortgage interest rates. The NAR said 31 percent of resales in January 2023 and December 2022 were for first-time buyers, up from 27 percent in January 2022. Buyers are not snapping up homes as quickly as they were. Properties were on the market for 33 days in January compared to 26 days in December, and 19 days in January 2022. A slower housing market means buyers have more power to negotiate prices.
Sales of single-family existing homes are down 0.8 percent to 3.59 million units in January after 3.62 million units in December and off 36.1 percent compared to a year ago. Resales of condos and co-ops are unchanged at 410,000 in January from December, and 43.1 percent from a year earlier.
The supply of homes available for sale is 980,000 (unadjusted) in January, slightly higher than the 960,000 in December. The months' supply of homes available for sale is unchanged at 2.9 months' worth in January from December and above 1.6 months' worth in January 2022. The median home price is down 2.0 percent to $359,000 in January after $366,500 in December, and up only 1.3 percent compared to the year-ago month.
First-time homebuyers are returning to the market with better supply and moderation in prices, and during a dip in mortgage interest rates. The NAR said 31 percent of resales in January 2023 and December 2022 were for first-time buyers, up from 27 percent in January 2022. Buyers are not snapping up homes as quickly as they were. Properties were on the market for 33 days in January compared to 26 days in December, and 19 days in January 2022. A slower housing market means buyers have more power to negotiate prices.
Market Consensus Before Announcement
Existing home sales, which have been in contraction, are expected to hold steady in January, at a 4.10 million annualized rate versus December's 4.02 million.
Definition
Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.
Description
This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.
Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.
Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.
Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
