Summary
- Existing-home sales expanded 3.1 percent in January to a seasonally adjusted annual rate of 4 Million
- Sales declined 1.7 percent from the prior year
- The median existing-home sales price climbed 5.1 percent from January 2023 to $379,100 – the seventh consecutive month of year-over-year price gains
Background Information
What’s new?
January 2024 Housing Snapshot
- The inventory of unsold existing homes increased 2 percent from the previous month to 1.01 Million at the end of January, or the equivalent of 3 months’ supply at the current monthly sales pace
- First-time buyers were responsible for 28 percent of sales in January, down from 29 percent in December and 31 percent in January 2023
- All-cash sales accounted for 32 percent of transactions in January, up from 29 percent in both December and one year ago
- Individual investors or second-home buyers, who make up many cash sales, purchased 17 percent of homes in January up from 16 percent in December and January 2023
January 2024 Economic Forecast
- NAR predicts 4.62 Million existing-home sales in 2024, up 13 percent from 4.09 Million anticipated in 2023
- NAR predicts the 30-year fixed-rate mortgage to average 6.5 percent in 2024, falling from the recent high of nearly 8 percent
- Dr. Lawrence Yun believes decreasing mortgage rates will improve housing affordability and encourage more home buyers to return to the market
- NAR projects existing-home sales will rise 13 percent and new home sales could increase by 15.2 percent in 2024
- The annual median home price is expected to rise 1.4 percent to $395,100 in 2024
- Dr. Yun predicts that the Federal Reserve will likely cut interest rates four times
- The 30-year fixed mortgage rate will bounce along the 6 percent to 7 percent range for most of the year
- Dr. Yun expects rent prices to calm down further in 2024, which will hold down the consumer price index
Read more at NAR.realtor here.