Home sales, prices rose in January as inventory hit new low

Sales of existing homes were up 24% from a year ago

National /
Feb.February 19, 2021 02:56 PM
Housing inventory fell to a historic low last month. (iStock, Andrew Wyeth via MOMA)

Housing inventory fell to a historic low last month. (iStock, Andrew Wyeth via MOMA / Photo Illustration by The Real Deal)

 

Sales of existing homes continued to surge in January.

The pace of sales increased 0.7 percent from December to an annual rate of 6.69 million, according to the National Association of Realtors’ monthly report. January’s rate was up nearly 24 percent year-over-year.

NAR’s chief economist, Lawrence Yun, said the pace would have been even higher if not for the lack of housing available for purchase.

“Sales easily could have been even 20 percent higher if there had been more inventory and more choices,” he said in a statement.

Housing inventory fell to yet another historic low in January with a mere 1.04 million units on the market, down 1.9 percent from December and down nearly 26 percent from a year earlier.

At last month’s rate, the unsold inventory would be bought in 1.9 months. Seventy percent of homes sold last month were on the market for less than a month.

Joel Kan, head of industry forecasting at the Mortgage Bankers Association, said the limited supply was pushing up prices. The median price across all housing types was $303,900 in January, up 14 percent from $266,300 in January 2020.

The average purchase loan size recorded in MBA’s weekly survey of the mortgage market has been reaching historic highs for weeks. Last week, the average loan size was $412,200.

Kan noted that the rate of new building permits, an indicator of new residential construction, made significant gains last month, despite the rate of housing starts declining.

“[That] hopefully bodes well for more choices for buyers and slower price growth in the spring,” he said in a statement.





    Related Articles

    arrow_forward_ios
    Quinn Residences' Douglas Caraballo with Houndswood Village in Durham, North Carolina and Drayton Park in Savannah, Georgia
    Developer plans 8K rental homes in Southeast
    Developer plans 8K rental homes in Southeast
    One57's unit 51B (left) and unit 32C with Extell’s Gary Barnett (One57 photos via StreetEasy)
    One57 resident pays $5.2M to swap 2-bed for duplex
    One57 resident pays $5.2M to swap 2-bed for duplex
    Rendering of Sonnen's ecoLinx home battery (Sonnen)
    Off the grid: Developers eye “virtual power plants” for properties
    Off the grid: Developers eye “virtual power plants” for properties
    Hedge fund manager Robert Citrone (Getty)
    This “Tiger Cub” hedge funder owns nearly 10% of Compass
    This “Tiger Cub” hedge funder owns nearly 10% of Compass
    Zynga founder Mark Pincus, Hippo founders Assaf Wand and Eyal Navon, and LinkedIn co-founder Reid Hoffman (Getty, LinkedIn)
    Hippo strikes $5B SPAC deal with LinkedIn, Zynga founders
    Hippo strikes $5B SPAC deal with LinkedIn, Zynga founders
    Opendoor CEO Eric Wu (Opendoor, iStock/Illustration by Alexis Manrodt for The Real Deal)
    Opendoor revenue plunged 45% in 2020
    Opendoor revenue plunged 45% in 2020
    CoStar CEO Andy Florance
    CoStar retreats from failed CoreLogic bid
    CoStar retreats from failed CoreLogic bid
    Jimmy Fallon and Nanvy Juvonen with their penthouse at 34 Gramercy Park East (Photos via Getty/Sotheby's Jeremy V. Stein and Debbie Korb)
    Jimmy Fallon lists Gramercy Park penthouse for $15M
    Jimmy Fallon lists Gramercy Park penthouse for $15M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...