U.S. existing-home sales advanced for the third straight month, climbing 2.2% to a seasonally adjusted annual rate of 4.24 million units, a 10-month high, according to the National Association of REALTORS® (NAR). Sales were up 9.3% year-over-year, driven largely by purchases of homes priced $500,000 and above. Month-over-month, sales rose in the south, northeast, and the west but fell in the midwest, with all four regions reporting year-over-year gains.
New listings increased 3.3% for residential homes and 32.7% for townhouse/condo homes. Pending sales decreased 11.2% for residential homes but increased 9.8% for townhouse/condo homes. Inventory decreased 8.7% for residential homes but increased 42.8% for townhouse/condo homes.
Median sales price increased 15% to $270,000 for residential homes and 5.7% to $222,000 for townhouse/condo homes. Days on market decreased 6.7% for residential homes but increased 17.9% for townhouse/condo homes. Months supply of inventory decreased 5.9% for residential homes but increased 46.7% for townhouse/condo homes.
According to NAR, total housing inventory was 1.15 million units heading into January, a 13.5% decrease from the previous month but a 16.2% increase from the same period one year earlier, for a 3.3-month supply at the current sales pace. Housing supply remains down compared to prepandemic levels, and the limited number of homes on the market continues to push sales prices higher nationwide, with the median existing-home price rising 6% year-over-year to $404,400.
