Financial News: U.S. Existing Home Sales Pull Back Sharply In

U.S. Existing Home Sales Pull Back Sharply In January

02/21/2025 - 10:18:00 (RTTNews)

(RTTNews) - Existing home sales pulled back sharply in the month of January, according to a report released by the National Association of Realtors on Friday.

NAR said existing home sales plunged by 4.9 percent to an annual rate of 4.08 million in January after surging by 2.9 percent to an upwardly revised rate of 4.29 million in December.

Economists had expected existing home sales to tumble by 2.8 percent to an annual rate of 4.12 million from the 4.24 million originally reported for the previous month.

The steeper than expected drop came a month after existing home sales jumped to their highest annual rate since reaching 4.31 million last February.

"Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve," said NAR Chief Economist Lawrence Yun. "When combined with elevated home prices, housing affordability remains a major challenge."

The report said housing inventory at the end of January totaled 1.18 million units, up 3.5 percent from 1.14 million in December and up 16.8 percent from 1.01 million a year ago.

The unsold inventory represents 3.5 months of supply at the current sales pace, up from 3.2 months in December and 3.0 months in January 2024.

"More housing supply allows strongly qualified buyers to enter the market," Yun said. "But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners."

NAR also said the median existing home price was $396,900 in January, down 1.7 percent from $403,700 in December but up 4.8 percent from $378,600 in the same month last year.

Next Wednesday, the Commerce Department is scheduled to release its report on new home sales in the month of January.

Economists currently expect new home sales to pull back by 1.2 percent to an annual rate of 690,000 in January after jumping by 3.6 percent to an annual rate of 698,000 in December.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.K. Private Sector Activity Growth Slows In February (36 min(s), 15 sec(s) ago)
(RTTNews) - The British private sector grew at its slowest pace in two months as services continue ...Full Story»

U.S. Consumer Sentiment Plunges To Lowest Level Since November 2023 (06 min(s), 15 sec(s) ago)
(RTTNews) - A report released by the University of Michigan on Friday showed consumer sentiment in ...Full Story»

U.S. Existing Home Sales Pull Back Sharply In January (52 min(s), 15 sec(s) ago)
(RTTNews) - Existing home sales pulled back sharply in the month of January, according to a report ...Full Story»

UK Budget Logs Surplus In January (11 min(s), 15 sec(s) ago)
(RTTNews) - The UK budget logged a record surplus for the month of January on self-assessed taxes ...Full Story»

Eurozone Private Sector Expands In February (33 min(s), 15 sec(s) ago)
(RTTNews) - The euro area private sector managed to grow for the second straight month in February ...Full Story»

Mexico Q4 GDP Growth Eases More Than Estimated (05 min(s), 15 sec(s) ago)
(RTTNews) - Mexico's economic growth eased slightly more than initially estimated in the fourt ...Full Story»

Latvia Producer Prices Fall 0.3% (46 min(s), 15 sec(s) ago)
(RTTNews) - Latvia's producer prices decreased in January after rising for the first time in e ...Full Story»

Ireland Wholesale Prices Rise 2.1% (13 min(s), 15 sec(s) ago)
(RTTNews) - Ireland's wholesale prices increased for the third straight month in January, data ...Full Story»