The data from the National Association of Realtors all major regions experienced declines in January, with the Northeast and West seeing the largest.
Total completed transactions fell 4.9% to a seasonally adjusted annual rate of 4.82 million in January, the lowest since last April from an upwardly-revised 5.07 million in December. Despite January’s decline, sales are higher by 3.2% than a year ago.
Lawrence Yun, NAR chief economist, said that the housing market got off to a somewhat disappointing start to begin the year with January closings down throughout the country.
‘January housing data can be volatile because of seasonal influences, but low housing supply and the ongoing rise in home prices above the pace of inflation appeared to slow sales despite interest rates remaining near historic lows,’ he explained.
‘Real estate agents are reporting that low rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions,’ he added.
Total housing inventory at the end of January increased 0.5% to 1.87 million existing homes available for sale, but is 0.5% lower than a year ago when it was 1.88 million. Unsold inventory is at a 4.7 month supply at the current sales pace, up from 4.4 months in December.
The median existing home price for all housing types in January was $199,600, which is 6.2% above January 2014 and marks the 35thconsecutive month of year on year price gains.
‘Although sales cooled in January, home prices continued solid year on year growth. The labour market and economy are markedly improved compared to a year ago, which supports stronger buyer demand. The big test for housing will be the impact on affordability once rates rise,’ Yun pointed out.
The data also shows that all cash sales were 27% of transactions in January, up from 26% in December 2014 but down from 33% in January of last year. Individual investors, who account for many cash sales, purchased 17% of homes in January, unchanged from last month and below January 2014 when it was 20%. Some 67% of investors paid cash in January.
Distressed sales, that is foreclosures and short sales, were 11% of sales in January, unchanged from last month but down from 15% a year ago. Some 8% of January sales were foreclosures and 3% were short sales. Foreclosures sold for an average discount of 15% below market value in January, unchanged from December, while short sales were discounted 12%, also unchanged from last month.
Properties typically stayed on the market slightly longer in January at 69 days than December at 66 days and a year ago at 67 days. Short sales were on the market the longest at a median of 128 days in January, while foreclosures sold in 63 days and non-distressed homes took 68 days. Some 30% of homes sold in January were on the market for less than a month.
A breakdown of the figures show that single family home sales dropped 5.1% to a seasonally adjusted annual rate of 4.27 million in January from 4.5 million in December, but are 3.9% above the 4.11 million pace a year ago. The median existing single family home price was $199,800 in January, up 6.3% from January 2014.
Existing condominium and co-op sales declined 3.5% to a seasonally adjusted annual rate of 550,000 units in January from 570,000 in December, and are now 1.8% below a year ago. The median existing condo price was $198,300 in January, which is 5.3% higher than a year ago.
January existing home sales in the Northeast fell 6% but are 3.3% above a year ago while the median price in the Northeast was $247,800, which is 2.7% above a year ago.
In the Midwest, existing home sales declined 2.7% but are still 0.9% above January 2014. The median price in the Midwest was $151,300, up 8.2% from a year ago.
Existing home sales in the South decreased 4.6% but are still 5.6% above January 2014. The median price in the South was $171,900, up 7.4% from a year ago.
In the West existing home sales dropped 7.1% but are still 1% above a year ago. The median price in the West was $291,800, which is 7.2% above January 2014.
