MNI DATA IMPACT: US Jan Existing Home Sales Highest in a Year

U.S. sales of existing homes climbed 0.6% to a seasonally adjusted annual rate of 6.69 million in January, the quickest sales pace since October, and would have been even higher if more inventory was available, the National Association of Realtors said Friday. From a year earlier, sales have jumped 23.7%.

The national median home price rose slightly to USD303,900, setting an all-time high for January, NAR chief economist Lawrence Yun told reporters, and is up 14.1% year-over-year

Home prices are being driven up by a severe inventory shortage, Yun said, with just 1.04 million homes available for sale at the end of last month. High demand for homes priced at USD1 million and above also underpins gains in the national median price, he added, with sales in that price category up 77% in January from one year ago.

"The upper end market is moving better than the lower end," he said. "Prices are being skewed upward as more million dollar homes sell."

Inventory constraints, rising prices, and rising mortgage rates are likely to hinder sales in the coming year, Yun said, predicting mortgage rates will reach a 3% average by the end of 2021.