Home Sales Numbers Show Surge

The real estate market continues its heatly stride with more positive news being released. The National Association of Realtors (NAR) has recently stated that home sales have increased for another month in a row in the month of January. While major areas across the country saw varying levels of activity, year-over-year gains showed double digit growth.

The total number of sales including single-families, townhomes, condos and co-ops had increased by 0.6% from December but was up by an impressive 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 Price Increases

Home values have risen now for the 107th month for year-over-year gains. The median home value in January was up by 14.1% from January of 2020 with price increases in all major sections of the country. 

Low Housing Inventory

The number of available homes on the market for sale continues to be slim. Total housing inventory in January was down by 1.9% from the month prior and substantially lower than this time last year by 25.7%. Inventory currently sits at a 1.9 month supply given the existing sales pace.

Days on Market Slip

Homes were on the market for an average of 21 days in January which was many fewer days 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 Rate Trends

Mortgage rates remain low with the average commitment rate for a 30 year fixed mortgage landing at 2.74% per Freddie Mac. This was up from 2.68% in December but lower than all of 2020’s average of 3.11%.