Economists expected that existing-home sales would decrease slightly to start off 2022
A housing-inventory shortage is creating headaches for home buyers looking to lock in low rates while they still can. As of January, the median sales price for an existing home was up 15% on an annual basis to $350,300.
The numbers: Existing-home sales increased by nearly 7% between December and January, hitting a seasonally-adjusted, annual rate of 6.5 million, the National Association of Realtors said Friday. Compared to a year ago, sales were down more than 2%.
Economists polled by MarketWatch expected the pace of home sales to come in at 6.1 million.
What happened: Unsold inventory dropped to a 1.6-month supply in January, representing a record low. A balanced marketed is indicated by a 6-month supply of homes.
The supply imbalance is contributing to the higher median prices being reported. As of January, the median sales price for an existing home was up 15% on an annual basis to $350,300. According to National Association of Realtors chief economist Lawrence Yun, the inventory of homes priced at or below $500,000 has dwindled, while supplies of more expensive homes remain more robust.
“There are more listings at the upper end — homes priced above $500,000 — compared to a year ago, which should lead to less hurried decisions by some buyers,” Yun said in the report. “Clearly, more supply is needed at the lower end of the market in order to achieve more equitable distribution of housing wealth.”
