Existing Home Sales Saw Longest Run of Declines Since 1999 in January

Existing home sales fell for the 12th consecutive month in January 2023, the longest run of declines since 1999, the National Association of Home Builders' Eye on Housing reports. Total existing home sales fell 0.7% on a monthly basis and 36.9% year-over-year in January to a seasonally adjusted annual rate of 4 million, the lowest level since November 2010, with the exception of April and May 2020.

As a result of slower buyer activity, for-sale homes stayed on the market for an average of 33 days in January, up from 26 days in December 2022 and 19 days in January 2022.

The first-time buyer share stayed at 31% in January, unchanged from last month but up from 27% in January 2022. The fact that this share has stayed stable is a positive sign of future homebuying demand. The January inventory level measure rose from 0.96 to 0.98 million units and was up 0.85 million from a year ago.

At the current sales rate, January unsold inventory sits at a 2.9-month supply, unchanged from last month but up from a 1.6-months reading a year ago.

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