Last month, the existing-home sales rose due to a surge in buyers with cash, as well as other eager buyers buying a home before interest rates go up. This has left the real estate market with extremely low inventory.
Existing home sales were on the rise last month – up 6.7 percent from December 2021. This figure is from the National Association of Realtors.
On a month-over-month basis, each of the four major U.S. regions experienced an increase in sales in January. Total existing-home sales completed transactions that include single-family homes, townhomes, condominiums, and co-ops, climbed 6.7% from December.
Total housing inventory at the end of January amounted to 860,000 units, down 2.3% from December and down 16.5% from one year ago (1.03 million).
Properties typically remained on the market for 19 days in January, equal to days on market for December, and down from 21 days in January 2021. Seventy-nine percent of homes sold in January 2022 were on the market for less than a month.
Individual investors or second-home buyers, who make up many cash sales, purchased 22% of homes in January, up from 17% in December and from 15% in January 2021. All-cash sales accounted for 27% of transactions in January, up from 23% in December and from 19% in January 2021.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.45% in January, up from 3.10% in December. The average commitment rate across all of 2021 was 2.96%.
Existing-home sales in the West increased 4.1% from the previous month, registering an annual rate of 1,270,000 in January, down 6.6% from one year ago. The median price in the West was $505,800, up 8.8% from January 2021.
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