ARLINGTON, Va.—Existing-home sales rose 0.6% in January to a seasonally-adjusted rate of 6.69 million units, representing a 23.7% increase in sales versus a year ago.
However, NAFCU's Curt Long noted again that tight supply is constricting existing-home sales growth as supply is now down to 1.04 million homes for sale and at its lowest level on record dating back to 1982.
"Prices have been climbing rapidly – even with some minor month-over-month declines, year-over-year changes have been significant," said Long, NAFCU's chief economist and vice president of research. "Sales for expensive homes over $1 million are also up 77% year-over-year.
"The combination of low mortgage rates and tight supply should keep sales fairly stable throughout 2021 as supply continues to chase demand," concluded Long.
Growth in 2 Regions
Sales rose in two regions in January. The South saw the largest gain, rising 3.2%, followed by the Midwest (+1.9%). Sales in the Northeast declined 2.2%, while the West fell 4.4%. Versus a year ago, sales were up in all regions over the month.
The median existing-home price declined from $309,200 in December to $303,900 in January (not seasonally-adjusted), representing a 14.1% increase from the median price a year ago, Long said.