• 4.00 million existing homes were sold in January (SAAR), down 0.7% from December and down 36.9% from January 2022, according to the National Association of Realtors (NAR).
• Total housing inventory at the end of January amounted to 980,000 units, NAR said, totaling 2.9 months of supply at the current sales pace. 
• The median existing-home price for all housing types in January was $359,000, up 1.3% from January 2022

Fluctuating demand caused by volatile mortgage rates and a slow trickle of new listings coming onto the market combined to bring another month of dismal home sales in January – now declining for twelve straight months and at the lowest level since 2010. We saw mortgage rates taking a breather in the beginning of the year, leading some buyers who were on the edge of affordability back into the market to take advantage of the brief dip in rates, which could possibly boost sales in February – at the expense of a slight increase in home prices. But as rates are back up in the first half of February, demand will likely take another hit and push the market back into a slower pace. And with new listings continuing to lag behind historical trends, the total inventory pool is drying up and leaving buyers who can afford to shop in this market with few options. Although inventory for existing home sales is lacking, the backlog of new construction homes from the permit boom during the pandemic should add some much needed new inventory to help keep the market moving this spring. And with many builders offering incentives, buyers might find more opportunities in the new construction market.