Existing Home Sales Increase 6.7% Month-Over-Month in January 2022

The National Association of Realtors® (NAR) reported on Friday (2-18-22) that total existing home sales (completed transactions for single-family homes, townhomes, condominiums, and co-ops) rose 6.7% in January from December to a seasonally adjusted rate at 6.50 million homes. Year-over-year, however, sales declined -2.3% (6.65 million in January 2021).

On a month-over-month basis, each of the four major U.S. regions experienced an increase in sales in January. However, year-over-year, activity was mixed as two regions reported sagging sales, another watched sales increase and a fourth region remained flat.

Total housing inventory at the end of January amounted to 860,000 units, down -2.3% from December and -16.5% from one year ago (1.03 million). Unsold inventory sits at a 1.6-month supply at the current sales pace, down from 1.7 months in December and from 1.9 months in January 2021.

The median existing home price for all housing types in January was $350,300, up 15.4% from January 2021 ($303,600), as prices rose in each region. This marks 119 consecutive months of year-over-year increases, the longest-running streak on record.

In a statement prepared for the release of the January Existing-Home sale report, Lawrence Yun, NAR’s chief economist said, “Buyers were likely anticipating further rate increases and locking-in at the low rates, and investors added to overall demand with all-cash offers. Consequently, housing prices continue to move solidly higher.”

“The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low,” Yun added. “There are more listings at the upper end—homes priced above $500,000—compared to a year ago, which should lead to less hurried decisions by some buyers. Clearly, more supply is needed at the lower-end of the market in order to achieve more equitable distribution of housing wealth.”