Existing-home sales fell for the twelfth straight month in January, with year-over-year sales falling 37%, the biggest decline since 2010, according to a report released Tuesday by National Association of Realtors. We’ll be referencing this article from USA Today.
“The current sales activity is even lower than the lockdown month in April 2020,” said NAR Chief Economist Lawrence Yun. “Home sales are bottoming out.”
Prices vary depending on a market’s affordability, with lower-priced regions witnessing modest growth and more expensive regions experiencing declines, he said.
“Inventory remains low, but buyers are beginning to have better negotiating power,” Yun added. “Homes sitting on the market for more than 60 days can be purchased for around 10% less than the original list price.”
Are home prices falling?
The median existing-home price for all housing types in January was $359,000, an increase of 1.3% from January 2022 ($354,300). Home prices climbed in three out of four U.S. regions while falling in the West. This marks 131 consecutive months of year-over-year increases, the longest-running streak on record.
What’s happening with mortgage rates?
Mortgage rates moved up for the second consecutive week. The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing, according to Freddie Mac. Overall housing costs are also increasing and therefore impacting inflation, which continues to persist.