Existing Home Sales Rise In January

Existing home sales
Existing home sales have rebounded slightly in January 2024.

The housing market, in true 2023 fashion, has been a roller coaster. But amidst the cooling frenzy and rising interest rates, a surprising statistic emerged: existing home sales actually increased by 3.1% in January 2024 compared to December. This uptick, following months of decline, has many wondering if the market is poised for a comeback. Let’s delve into the numbers and explore what’s driving this trend with existing home sales.

Key Takeaways for existing home sales

  • Sales Up, Prices Up: While sales rose, they still sit 1.7% lower than January 2023. However, the median sale price soared to a record high of $379,100, representing a 5.1% increase year-over-year.
  • Regional Variations: The West Coast saw the most significant gains, with sales rising 4.3% monthly and 2.8% annually. The Northeast held steady, while the Midwest and South experienced moderate growth.
  • Inventory on the Rise: A slight increase in listings (2.0% monthly, 3.1% annually) offered a glimmer of hope for buyers, but inventory remains low, hovering around a 3.0-month supply.
  • Cash is King: All-cash buyers made up 32% of sales, the highest share since 2014, highlighting the competitive nature of the market.

Factors to consider for the future of existing home sales

  • Mortgage Rates: Rates have risen again since January, potentially dampening buyer enthusiasm.
  • Economic Outlook: Continued economic stability could support demand, while a downturn could lead to another slowdown.
  • Inventory Growth: Continued increases in listings could ease competition and stabilize prices.

Summary

Experts throughout the housing industry offer mixed opinions on the future of existing home sales and the market as a whole. Some believe the January rise is a temporary anomaly fueled by a brief dip in mortgage rates, while others see it as a potential turning point.

Overall, the January sales increase offers a cautious note of optimism for the housing market. However, much depends on external factors, making it difficult to predict the market’s long-term trajectory.

For potential buyers and sellers, staying informed about market trends and consulting with a qualified real estate professional is crucial for making informed decisions.

Are you looking to buy or sell real estate in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.