After three months of increases, sale took a big dive in January.
The NAR reports Existing-Home Sales Decreased 4.9% in January, But Increased Year-Over-Year for Fourth Consecutive Month
Five Key Highlights
- Existing-home sales fell 4.9% month-over-month to a seasonally adjusted rate of 4.08 million in January 2025.
- Year-over-year, sales improved 2.0%.
- Sales are down 35.6 percent from cycle high of 6.34 million in January of 2022.
- The median existing-home sales price advanced 4.8% from January 2024 to $396,900, the 19th consecutive month of year-over-year price increases.
- The inventory of unsold existing homes grew 3.5% from the prior month to 1.18 million at the end of January, or the equivalent of 3.5 months’ supply at the current monthly sales pace.
The Bloomberg Econoday consensus was 4.16 million.
Existing-Home Sales Percent Change from year Ago
Due to a hard comparison in February, I expect sales to go negative again next month.
Long-Term Perspective
Existing-home sales are about where they were in November of 1978.
Existing-Home Sales Supply
Despite seasonal adjustments, the data sows strong seasonal tendencies. This implies faulty seasonal adjustments.
Related Posts
January 24, 2025: For the Full Year, 2024 Existing-Home Sales Lowest in Nearly 30 Years
February 10, 2025: Renters Are Tired of Moving, Settling in for the Long Haul
February 18, 2025: NAHB Housing Sentiment Flounders, the Market Needs Lower Mortgage Rates
February 18, 2025: Housing Starts Drop 9.8 Percent, Unable to Retain Any Traction
The Fed has never considered home prices to be a part of inflation stats. It wrecked the market in those beliefs.
There is no easy way for the Fed to rectify its mistakes.