- ORIGINAL NEWS
Existing home sales rose 3% to start the year, but higher mortgage rates are already hurting
- SUMMARY
Sales of previously owned homes increased in January with a boost from lower mortgage interest rates.
The inventory of available homes also rose.
The median home price experienced a 5.1% increase compared to the previous year, setting a new record for January.
January’s sales, however, were still lower than those of the same month in 2023.
Cash deals accounted for a significant portion of sales, reaching a high of 32%.
First-time buyers faced challenges due to limited availability of lower-priced homes.
As mortgage rates trend higher, the market might face difficulties again, as indicated by a decrease in signed contracts for new listings.
- NEWS SENTIMENT CHECK
- Overall sentiment:
mixed
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.”
“The median existing-home price for all housing types in January was $379,100, up 5.1% from a year earlier and an all-time high for the month of January.”
Negative
“By mid-December, the rates had hit a recent low of around 6.6%. Today they are back over 7%, according to Mortgage News Daily.”
“While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand.”
“Multiple offers are common on mid-priced homes, and many homes were still sold within a month. The elevated share of cash deals – 32% – indicated a market full of multiple offers and propelled by record-high housing wealth.”
“First-time buyers made up just 28% of sales. Historically they make up about 40%, but a lack of lower-priced homes for sale is hitting them hardest.”