The sales of existing-homes, completed transactions that include single-family homes, townhomes, condominiums and co-ops inch forward by 0.4 percent from the downwardly revised 5.45 million in December to a seasonally adjusted annual rate of 5.47 million in January, according to the National Association of Realtors.
"The housing market has shown promising resilience in recent months, but home prices are still rising too fast because of ongoing supply constraints," said Lawrence Yun, Chief Economist at National Association of Realors. "Despite the global economic slowdown, the housing sector continues to recover and will likely help the U.S. economy avoid a recession."
According to the press release of NAR in PR NewsWire, the January existing-home sales are 11.0 percent higher than the same month last year, the largest year-over-year increase in existing-home sales since July 2013.
Although the total housing inventory has improved slightly, increased 3.4 percent to 1.82 million existing homes available for sale, the median price for an existing-home is still on the rise with a 8.5 percent increase to $213,800, up 8.2 percent from January 2015 ($197,600).
"The spring buying season is right around the corner and current supply levels aren't even close to what's needed to accommodate the subsequent growth in housing demand," says Yun. "Home prices ascending near or above double-digit appreciation aren't healthy - especially considering the fact that household income and wages are barely rising."
Even with increase in January, the total housing inventory is still 2.2 percent lower than a year ago (1.86 million). Basing at the current sales pace, the unsold inventory is at a 4.0-month supply. Properties tend to stay in the market longer in January, from 58 days in December to 64 days.
The National Association of REALTORS® is America's largest trade association, representing over 1.1 million members, including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries.
