According to the National Association of Realtors, existing home sales declined 1.2% in January, not as bad as December, however it marks the 3rd consecutive month of sales declines. Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops,decreased to a seasonally adjusted annual rate of 4.94 million in January, down 8.5% from one year ago. Total housing inventory at the end of January was 1.59 million, slightly higher than December. There is a 3.9 month supply at the current sales pace. Ever the optimist, Mr Yun added:
“Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.” Said Lawrence Yun, the NAR’s chief economist.