January US property sales achieve a five-month high LeapRate
Existing residential sales in the US tallied a five-month high in January 2024 as lower mortgage rates sparked buyer interest. According to the National Association of Realtors (NAR), sales were up 3.1% from December 2023. These include single-family homes, townhouses, condominiums and co-ops.
The year-on-year comparison, however, shows a 1.7% decline. Based on Reuters data, January sales predictions came to 3.97 million units as opposed to the realised 4.00 million units. As residential resales are only valid after finalising agreements, these totals most likely reflect deals in the two months preceding January 2024.
In December 2023, the average interest rate on a 30-year mortgage dropped from 7.79% to 6.61%. NAR information shows that sales picked up in the Midwest, South and West, but remained more or less unchanged in the Northeast.
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At the end of January 2024, there were 1.01 million listed units, constituting a slight rise from the month before. The mean existing home price came to $379,100 for January this year, which is a 5.1% increase from the year before.
Lawrence Yun, NAR chief economist, said:
While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand. Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.
First-time buyers made up 28% of the January 2024 sales. This is a slight drop from the 29% in December 2023. All-cash sales totalled 32%, establishing a month-on-month and year-on-year increase.
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