Existing Home Sales Surge Once Again

The new year brings an increase in the number of home sales

According to a recent release from the National Association of Realtors (NAR) the number of existing home sales have increased as we get under way in 2022. All of the four major regions in the United States saw an increase in total sales on a month-by-month basis this January. The total number of existing sales of homes including single families, condos, coops and townhomes was up by 6.7%.

"Buyers were likely anticipating further rate increases and locking-in at the low rates, and investors added to overall demand with all-cash offers," said Lawrence Yun, NAR's chief economist. "Consequently, housing prices continue to move solidly higher." 

Housing Inventory Levels

Available housing inventory at the end of January was down 2.3% from December and down 16.5% from one year ago. Inventory levels rests at a 1.6-month supply at the current sales pace which is down from 1.7 months in December and from 1.9 months in January 2021.

Home Price Trends

The median existing home price for all housing types for January was up 15.4% from January of 2021 as prices rose in each region. This marked the 119th consecutive month of year-over-year increases which is also the longest-running streak on record.

Mortgage Rates

According to Freddie Mac data, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was at 3.45% for the month of January which was a slightly higher than 3.10% seen in December. The average commitment rate for all of 2021 was 2.96%.

Days Active on Market

Properties were on the market for an average of 19 days in January which was the same number of days on market for December, and down from 21 days seen in January 2021. Seventy-nine percent of the homes that were sold in January 2022 were on the market for less than a month.