Existing home sales last month tumbled to the slowest pace in nine months, and home sales in the West led the decline.
The seasonally adjusted annual rate of existing U.S. home sales — including single-family homes, townhomes, condominiums and cooperatives — was 4.82 million in January.
Sales slowed from the final month of last year, when the rate was 5.07 million. December’s rate was originally reported at
5.04 million.
The National Association of Realtors, which provided the sales data on Monday, noted that last month’s pace was the slowest since April 2014’s seasonally adjusted rate of 4.75 million.
NAR Chief Economist Lawrence Yun explained in the report that seasonal factors, low housing supply and increasing home prices all played a role in the dismal results.
“Realtors are reporting that low rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions,” Yun stated in the report.
The report indicated that sales were up 3.2 percent from January 2014. NAR noted that it was the fourth consecutive year-over-year improvement.
At a 7.1 percent decline from December, home sales in the West saw the biggest drop. The 2.7 percent reduction in the Midwest was the smallest.
Single-family homes accounted for 4.27 million of January 2015’s U.S. rate.
The total housing inventory finished last month at 1.87 million existing homes for sale. That was up 0.5 percent from December but 0.5 percent lower than in January 2014.
It took 69 days to sell homes in January, three days more than a month earlier and two days more than a year earlier.
At the current pace of home sales, it would take 4.7 months to clear out all listings. The prior month’s supply was 4.4 months.
The trade group said that the median existing home price was $199,600 in January, a 6.2 percent increase from the first month of last year. It was the 35th consecutive month of year-over-year gains in home prices.
In the report, NAR
President Chris Polychron called on the Federal Housing Administration to loosen its restrictions on condominium financing. He noted that loans secured by condominiums are among the strongest in FHA’s book of business.
“Condominiums offer an affordable option and are the first step to homeownership for many home-buyers,” he said.
January’s all-cash share of sales was 27 percent, while distressed sales accounted for 11 percent of activity.
