MNI DATA ANALYSIS: US Jan Existing Home Sales -3.2% to 5.38M

By Kevin Kastner, Sara Haire and Holly Stokes

     WASHINGTON (MNI) - Home resales fell by 3.2% in January to an annual rate

of 5.38 million, well below expectations for a rise to a 5.62 million pace as

supply remains tight, data released by the National Association of Realtors

reported Wednesday showed.

     The January sale pace was the lowest for a January reading since the series

began in 1999. Sales were down 4.8% from January 2017, the largest 12-month

decline since August 2014. 

     December sales were revised down slightly to a 5.56 million rate from the

originally reported 5.57 million annual rate. Annual revisions were included

with the data. After those were incorporated, the fourth quarter average monthly

average pace stands at 5.59 million and the 2017 level, which is unadjusted,

stands at 5.51 million, so 2018 sales are off to a slow start.

     --SUPPLY REMAINS SOFT

     The number of housing units available for sale rose 4.1% in January to a

total of 1.52 million houses, as usual for January. However, the home supply was

down 9.5% from a year earlier. The months supply ticked up to 3.4 months from

3.2 months in December due to the decline in sales, but remained below the 3.6

months supply a year ago. Combined with fast markets reported by local realtors

and it is easy to see why prices keep rising.

     "The interest is there, but they can't close the deal due to the lack of

inventory," NAR Chief Economist Lawrence Yun told reporters.

     --REGIONAL DATA DOWN ACROSS THE BOARD

     Sales were down in all four regions of the country. Yun noted the South

regions continues to outperform the other regions, but even that regions saw and

monthly and year/year decline.

     --PRICES CONTUINUE TO RISE

     January's national median price of $240,500 was down from December, but up

5.8% from a year earlier, a sign of short supply continues to lift prices, even

as sales have softened.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

[TOPICS: MAUDS$,M$U$$$]