- ORIGINAL NEWS
Existing home sales rose 3% to start the year, but higher mortgage rates are already hurting
- SUMMARY
In January, sales of used homes increased despite a slight annual decline.
This rise was likely driven by lower mortgage rates during November and December.
However, inventory levels remain low, creating a competitive market that has led to higher prices.
The median cost of a used home reached an all-time high for January, at $379,100.
Higher mortgage rates are now affecting the market again, with signed contracts decreasing from last year.
Despite the challenges for first-time buyers finding affordable homes, multiple offers and cash deals are still common, reflecting the strong demand.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Sales of previously owned homes rose in January, boosted by lower mortgage interest rates of November and December.”
“Sales of previously owned homes rose 3.1% in January to 4 million units on a seasonally adjusted annualized basis, according to the National Association of Realtors.”
“Inventory of homes for sale in January increased to 1.01 million units, up 3.1% from January 2023, but still at a low three-month supply.”
“All four U.S. regions saw price increases, and 16% of homes were sold above list price.”
“The 32% all-cash share was up from 29% in both December and in January 2023.”
“A separate report from Redfin showed new listings rose 10% year over year during the four weeks ended Feb. 18, the biggest increase in two months.”
Negative
“Sales were down 1.7% year over year.”
“First-time buyers made up just 28% of sales.”
“While lower mortgage rates helped boost January sales, today’s higher rates are already once again weighing on the market.”
“Signed contracts, however, were down 7% from a year ago”