US existing-home sales slipped 1% month-over-month and were down 6.2% year-over-year as of last measure, while pending sales jumped 8.3% from the previous month, marking the largest gain since June 2020, according to the National Association of REALTORS® (NAR). Mortgage rates have dropped significantly from their peak last fall, and homebuyers are beginning to come out of the woodwork, with NAR forecasting a 13% increase in existing-home sales this year compared to 2023.
New listings increased 4.9% for residential homes and 3.3% for townhouse/condo homes. Pending sales increased 10.5% for residential homes but decreased 12.1% for townhouse/condo homes. Inventory increased 2.8% for residential homes and 13.4% for townhouse/condo homes.
Median sales price decreased 0.4% to $235,000 for residential homes but increased 3.9% to $213,000 for townhouse/condo homes. Days on market increased 7.1% for residential homes and 11.1% for townhouse/condo homes. Months supply of inventory increased 7.1% for residential homes and 27.3% for townhouse/condo homes.
Despite tepid sales activity, the persistent shortage of housing supply has helped prop up home values nationwide, with the median existing-home price rising 4.4% year-over-year to $382,600, according to NAR. Total unsold inventory was at one million units heading into January, an 11.5% decline from the previous month, for a 3.2 months’ supply at the current sales pace. Nationally, listing activity has started to pick up, and with mortgage rates stabilizing and housing completions on the rise, inventory is expected to improve in the coming months.
