| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Annual Rate | 3.97M | 3.75M to 4.10M | 4.00M | 3.78M | 3.88M |
| Month over Month | 3.1% | -1.0% | -0.8% | ||
| Year over Year | -1.7% | -6.2% | -3.7% |
Highlights
Existing home sales are up 3.1 percent to 4.00 million units at a seasonally adjusted annual rate, up from an upward revision to 3.88 million units in December. The level in January is slightly above the consensus of 3.98 million units in the Econoday survey of forecasters.
The increase reflects moderation in mortgage interest rates late in 2023 which improved affordability as well as more supply coming on to the market. NAR Chief Economist Lawrence Yun said,"While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand." He continued,"Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year."
Resales of single-family homes rose 3.4 percent in January to 3.60 million units in January and were unchanged at 400,000 for condominiums and coops.
The month's supply of homes available for sales was 3.0 in January, little changed from 3.1 months in December and 2.9 in January 2023. However, the inventory of homes available for sale rose to 1.01 million units from 990,000 in December and was up from 980,000 in January 2023. The median price of an existing home was down 0.6 percent to $379,100 in January, but the highest for a January. The median price was up 5.1 percent compared to a year ago and firmer on a year-over-year basis for the past seven months.
Homes are on the market for an average of 36 days in January, up from 29 in December and 33 in January 2023. First time buyers accounted for 28 percent of home resales, little changed from 29 percent in December and 29 percent in January 2023. The January data reflect revisions that go back three years.
The increase reflects moderation in mortgage interest rates late in 2023 which improved affordability as well as more supply coming on to the market. NAR Chief Economist Lawrence Yun said,"While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand." He continued,"Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year."
Resales of single-family homes rose 3.4 percent in January to 3.60 million units in January and were unchanged at 400,000 for condominiums and coops.
The month's supply of homes available for sales was 3.0 in January, little changed from 3.1 months in December and 2.9 in January 2023. However, the inventory of homes available for sale rose to 1.01 million units from 990,000 in December and was up from 980,000 in January 2023. The median price of an existing home was down 0.6 percent to $379,100 in January, but the highest for a January. The median price was up 5.1 percent compared to a year ago and firmer on a year-over-year basis for the past seven months.
Homes are on the market for an average of 36 days in January, up from 29 in December and 33 in January 2023. First time buyers accounted for 28 percent of home resales, little changed from 29 percent in December and 29 percent in January 2023. The January data reflect revisions that go back three years.
Market Consensus Before Announcement
After December's 3.78 million annual rate, existing home sales in January are expected to rise to a 3.97 million rate. High mortgage rates, which have since moderated, constrained sales in prior months.
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.
