January Existing Home Sales Key Takeaways: Strong Start to 2017
- Existing home sales beat expectations for the fourth time in five months in January, rising 3.3 percent from December to 5.69 million units (SAAR), the highest level since February 2007.
- Condo/coop sales experienced the biggest month-over-month gain, driven by sales in the Western United States, which jumped 14.3 percent in January after a soft December.
- The median price of existing homes sold in January rose 2.5 percent to a new all-time high of $243,500.
Existing home sales rebounded strongly in January from after a weak, unusually wintry December, the fourth month in the past five in which existing sales beat expectations.
January existing home sales rose 3.3 percent from December to 5.69 million units at a seasonally adjusted annual rate (SAAR), according to the National Association of Realtors (figure 1). January was the fourth out of the past five months in which sales strongly beat forecasts. December sales were also revised slightly upward, from an initially reported 5.49 million units to 5.51 million units (SAAR).
Sales were buoyed by a significant jump in (often volatile) condo/coop sales, which rose 8.3 percent from December compared to a 2.65 percent monthly increase in existing single-family home sales. Condo/coop sales also rose more strongly year-over-year than single-family sales, up 4.8 percent from January 2016 compared to an annual increase of 3.7 percent for single-family homes. Condo/coop sales in the West experienced the largest month-over-month increase, rising 14.3 percent, compared to 8.3 percent in the Northeast, 7.7 percent in the South and flat sales in the Midwest. However, this jump is likely due – at least in part – to a sluggish December, when condo/coop sales in the West fell 22.2 percent. Compared to January 2016, condo/coop sales in the West are up 6.7 percent versus 8.3 percent in the Northeast, 3.7 percent in the South and flat in the Midwest.
The West also saw the largest month-over-month jump in sales of existing single-family homes (up 5.6 percent). Compared to January 2016, sales of existing single-family homes are up 8.65 percent in the West, 6.35 percent in the Northeast, 3.05 percent in the South. Sales of single-family homes in the Midwest fell by 0.8 percent compared to a year ago.
The number of existing homes on the market in January edged higher from December, up 0.8 percent to 1.91 million units (SAAR), but remains 7.1 percent below its January 2016 level. Over the year, inventory of single-family homes is down 6.8 percent, while condo/coop inventory is down 8.7 percent.
The median seasonally adjusted price of existing homes sold in January rose 2.5 percent to $243,500, up 6.9 percent from January 2016 and a new all-time high. The median price of existing homes sold is now 5.6 percent above its pre-crisis peak. Sales prices rose more for single-family homes (up 3.6 percent) than for condos/coops (up 1.1 percent) compared to both December and a year ago (up 7.1 percent for single-family homes and up 5.9 percent for condos/coops). While the median seasonally adjusted sales price of existing single-family homes sold in January was 7.9 percent above its pre-crisis peak, the median sales price of condos/coops remains 2.1 percent below its pre-crisis peak.