What does the January 2025 housing market data say?
The National Association of Realtors (NAR) released housing market data for January 2025 today. Data showed that existing-home sales rose 2.0% from one year ago. This marks the fourth straight monthly year-over-year increase.
Also, the median existing-home sales price advanced 4.8% from January 2024 to $396,900, the 19th consecutive month of year-over-year price increases. However, the inventory of unsold existing homes grew 3.5% from the prior month to 1.18 million at the end of January.
Data indicates that the housing market in January was more active than last year and provided homebuyers with more available options than they had at the same time in 2024.
NAR Chief Economist Lawrence Yun stated, “More housing supply allows strongly qualified buyers to enter the market, but for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners."
What’s the latest on market sentiment?
The National Association of Realtors measures market sentiment with their REALTORS® Confidence Index, a survey of housing market strength sent to over 50,000 practitioners.
According to the survey, supply was still limited relative to demand and 15% of homes sold above list price, virtually unchanged from last month’s 16% and from 16% a year ago.
Also, 47% of respondents reported that properties sold in less than one month. This is down slightly from a month ago (49%) and down from 53% one year ago.
Homes listed received an average of 2.6 offers, up from 2.1 last month and essentially flat from 2.7 one year ago.
This data shows that the winter market is starting to thaw, but we still have a ways to go as we inch toward a potentially hotter spring market.
Did mortgage rates show any change?
According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.85% as of February 20th. That’s down from 6.87% one week ago and down from 6.90% one year ago.
Which regions showed changes in existing home sales?
All three out of four key regions of the U.S. showed an increase in existing home sales when comparing January 2025 data to the previous year. The lone holdout was the southern region which saw home sales virtually unchanged year-over-year.
- The Northeast saw a 4.2% increase in existing home sales from January 2024 to January 2025.
- The Midwest picked up a 5.3% increase in existing home sales when comparing January 2025 with January 2024.
- The Western region of the U.S. managed a 1.4% increase in existing home sales over the same time period.
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