Newsroom

February 22, 2017

Existing-home sales increase 3.3% in January

Existing-home sales grew 3.3 percent in January despite low inventory levels and higher mortgage rates, according to data analyzed in a NAFCU Macro Data Flash released Wednesday.

"Existing home sales rose in January to its highest level since February 2007," NAFCU Research Assistant Yun Cohen wrote, citing data from the National Association of Realtors. "Both single family home sales and condo sales surged despite low inventory levels, rising home prices and higher mortgage rates. Affordability conditions have been declining and that trend is expected to continue.

"Nevertheless, improving rates of household formation should support modest sales growth overall in 2017," Cohen continued.

The median existing-home price dropped from $233,300 in December to $228,900, not seasonally adjusted, in January – still 7.1 percent higher than the median price from a year ago and marking the 59th consecutive month of year-over-year price increases.

Sales increased in three out of the four regions in January, rising the most in the West at 6.6 percent. Sales dropped 1.5 percent in the Midwest.