The National Association of Realtors (NAR) will release its latest information regarding existing-home sales on Tuesday.
Its last recording found existing-home sales fell in January by 1.3% to a seasonally adjusted rate of 5.46 million.
January, though, was the second straight month overall sales increased year-over-year, rising 9.6% from January 2019.
“Existing-home sales are off to a strong start at 5.46 million,” Yun said. “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales,” said Lawrence Yun, NAR’s Chief Economist.
The median home prices for the month rose 6.8% annually to $266,300. Home prices this last year were $249,400. Prices rose in every region.
“Mortgage rates have helped with affordability, but it is supply conditions that are driving price growth,” Yun said.
Total housing inventory at the end of January was 1.42 million units—up 2.2% from December but down 10.7% from last year. The housing inventory level in January is the lowest level recorded since 1999.
“Strong U.S. economic conditions, low mortgage rates, and aging millennials have bolstered buyer optimism and demand for housing, but supply has been a very literal missing piece of the puzzle, which is why we forecast somewhat weaker home sales in 2020,” said Danielle Hale, Chief Economist at realtor.com. “With builder optimism high and home construction starting the year on a high note, the pieces are starting to come together for some improvement, but with the building shortage spanning more than a decade at this point, we won't see an end to the shortage overnight.”
Also in the week ahead, DS5: Inside the Industry will feature exclusive interviews with Sean Ryan, CEO, Aspen Grove Solutions, Christopher Whalen, Investment Banker, Author, the Institutional Risk Analyst, Lawrence Yun, Chief Economist, SVP Research, NAR, and Eric Lapin.
Here's what else is happening in The Week Ahead:
NAR New Home Sales (April 22)
New episodes of DS5: Inside the Industry (April 21 and 23)