The data from the National Association of Realtors shows that the West was the only region to see a decline in sales in January after a nationwide rise of 0.4% compared to December.
The median existing home price for all housing types in January was $213,800, up 8.2% from January 2015, the largest rise since April 2015 and the 47th consecutive month of year on year gains.
Lawrence Yun, NAR chief economist, said it was the largest year on year gain since July 2013. ‘The housing market has shown promising resilience in recent months, but home prices are still rising too fast because of ongoing supply constraints,’ he pointed out.
‘Despite the global economic slowdown, the housing sector continues to recover and will likely help the US economy avoid a recession,’ he added.
Total housing inventory at the end of January increased 3.4% to 1.82 million existing homes available for sale, but is still 2.2% lower than a year ago. Unsold inventory is at a four month supply at the current sales pace, up slightly from 3.9 months in December 2015.
‘The spring buying season is right around the corner and current supply levels aren't even close to what's needed to accommodate the subsequent growth in housing demand. Home prices ascending near or above double digit appreciation aren't healthy, especially considering the fact that household income and wages are barely rising,’ Yun explained.
The share of first time buyers remained at 32% in January for the second consecutive month and is up from 28% a year ago. First time buyers in all of 2015 represented an average of 30%, up from 29% in both 2014 and 2013.
All cash sales were 26% of transactions in January, up from 24% in December 2015 but down from 27% a year ago. Individual investors, who account for many cash sales, purchased 17% of homes in January compared to 15% in December 2015, matching the highest share since last January. Some 67% of investors paid cash in January.
Properties typically stayed on the market for 64 days in January, an increase from 58 days in December but below the 69 days in January 2015. Short sales were on the market the longest at a median of 77 days in January, while foreclosures sold in 57 days and non-distressed homes took 61 days and 32% of homes sold in January were on the market for less than a month.
Distressed sales, that is foreclosures and short sales, rose slightly to 9% in January, up from 8% in December but down from 11 a year ago. Some 7% of January sales were foreclosures and 2% were short sales. Foreclosures sold for an average discount of 13% below market value in January compared to 16% in December, while short sales were discounted 12%, less that the 15% recorded in December.
A breakdown of the figures shows that single family home sales increased 1% to a seasonally adjusted annual rate of 4.86 million in January from 4.81 million in December, and are now 11.2% than a year ago. The median existing single family home price was $215,000 in January, up 8.3% from January 2015.
Existing condominium and co-op sales fell 4.7% to a seasonally adjusted annual rate of 610,000 units in January from 640,000 in December, but are still 8.9% above January 2015. The median existing condo price was $203,900 in January, 7.4% above a year ago.
January existing home sales in the Northeast increased 2.7% to an annual rate of 760,000, and are now 20.6% above a year ago. The median price in the Northeast was $247,500, which is 0.9% above January 2015.
In the Midwest, existing home sales rose 4% to an annual rate of 1.30 million in January, and are now 18.2% above January 2015. The median price was $164,300, up 8.7% from a year ago.
Existing home sales in the South were at an annual rate of 2.24 million in January, unchanged from December, and are 5.7% above January 2015. The median price in the South was $184,800, up 8% from a year ago.
Existing home sales in the West decreased 4.1% to an annual rate of 1.17 million in January, but are still 8.3% higher than a year ago. The median price in the West was $309,400, which is 7.4% above January 2015.
