CHICAGO, Feb. 21 (Xinhua) -- Existing-home sales declined in January in the United States amid increased prices due to limited supplies.

Total existing-home sales, or completed transactions including single-family homes, townhomes, condominiums and co-ops, slipped 1.3 percent from December to a seasonally-adjusted annual rate of 5.46 million in January, the National Association of Realtors (NAR) said on Friday.

However, for the second straight month, overall sales substantially increased year on year, up 9.6 percent from a year ago.

According to NAR data, home prices rose in every region, with the median existing-home price for all housing types in January being 266,300 U.S. dollars, up 6.8 percent from January 2019.

"Mortgage rates have helped with affordability, but it is supply conditions that are driving price growth," said Lawrence Yun, NAR's chief economist.

"The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales," Yun added.

The housing inventory for January was at the lowest level since 1999, totaling 1.42 million units, down 10.7 percent from one year ago.

NAR's latest quarterly report found that an overwhelming majority of metro areas experienced price gains while witnessing very minor increases in inventory in the final quarter of 2019.

Properties typically remained on the market for 43 days in January, seasonally up from 41 days in December, but down from 49 days in January 2019. Forty-two percent of homes sold in January 2020 were on the market for less than a month.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.62 percent in January, down from 3.72 percent in December. One year ago, the commitment rate stood at 4.46 percent.

"We are hopeful and also confident that home sales will improve this year," said NAR President Vince Malta. Enditem

Related

Go to Forum >>0 Comment(s)