The real estate market continues to show great signs with more positive data being released. The National Association of REALTORS® (NAR) has recently stated that the number of home sales has increased for another month in a row in January. The major regions across the country saw different levels of activity, but year-over-year gains showed double-digit growth.
The number of home sales of single families, townhomes, condos, and co-ops had increased by 0.6% from December but was significantly up by 23.7% from this time last year.
"Home sales continue to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market," said Lawrence Yun, NAR's chief economist. "Sales easily could have been even 20% higher if there had been more inventory and more choices."
Home Prices Rise
Home prices have consistently been rising now for the 107th month for year-over-year gains. The median home price in January was up by 14.1% from January 2020 with price increases seen in all major regions of the country.
Housing Inventory is Limited
The number of homes on the market available for sale continues to be very slim. Inventory levels in January were down by 1.9% from the month prior and drastically lower than this time last year by 25.7%. Inventory currently hovers at a 1.9-month supply given the existing sales pace.
Days on the Market are Down
Homes were available on the market for an average of 21 days in January which was much lower than January of 2020 at 43 days. The bulk of homes sold this January were on the market for less than one month.
Home Loan Rates Stay Low
Mortgage rates remain low with the average commitment rate for a 30-year fixed mortgage at 2.74% per Freddie Mac. This was an increase from 2.68% in December but lower than all of 2020’s average of 3.11%.
