Steel Markets

Existing Home Sales Rebound in January

March 22, 2019

Existing home sales jumped 11.8 percent in February for its largest month-over-month gain since December 2015. The seasonally adjusted annual rate rose to 5.51 million, strongly rebounding from January, said the National Association of Realtors. Sales compared to a year ago were down 1.8 percent.

“A powerful combination of lower mortgage rates, more inventory, rising income and higher consumer confidence is driving the sales rebound,” said NAR chief economist Lawrence Yun.

Mortgage rates climbed through the bulk of 2018, putting purchases out of range for some buyers. In December, rates began to fall and were down to about 4.5 percent in January, encouraging buyers to re-enter the market.

Inventory increased to 1.63 million units from 1.59 million units in January and 1.58 million in 2018. The February inventory represents a 3.5-month supply at the current sales rate.

Yun said inventory levels still have room for improvement. “For sustained growth, significant construction of moderately priced homes is still needed. More construction will help boost local economies and more home sales will help lessen wealth inequality as more households can join in housing wealth gains.”

The median sales price for all housing types continued to rise in February for the 84th consecutive month, up 3.6 percent from last year to $249,500.

Single-family home sales rose from January’s total SAAR of 4.36 million to 4.94 million. Median price rose 3.6 percent year-over-year to $251,400.

Condos and co-ops sold at a SAAR of 570,00 units, unchanged from January and down 5.0 percent from a year ago. Median price rose 3.1 percent to $233,300.

Sales rose in the Midwest, South and West in February, but were unchanged in the Northeast.