MNI: US Existing Home Sales Likely Bottoming Out At 4.0M Pace

U.S. existing home sales fell in January by 0.7%, more than analysts expected, to a seasonally adjusted annual rate of 4.00 million, though sales are bottoming out, the National Association of Realtors said Tuesday. It marks the twelfth straight month of declines and is the weakest sales pace since October 2010.

The median existing-home sales price increased 1.3% from one year ago to USD359,000, the slowest month of price gain since February 2012, the NAR said, but there are signs that buyers are gaining some negotiating power. Homes that have sat on the market for more than 60 days are generally selling for 10% less than list price, NAR chief economist Lawrence Yun said.

"Half the country is experiencing price declines, but I think it will be modest," Yun said, adding he would not be surprised if sales reaccelerate to a 5 million pace by the end of the year due to pent-up demand.