Existing-home sales dropped to the lowest level in more than three years in January 2019, down 1.2 percent over the previous month. Annually, sales were down 8.5 percent, per data from the National Association of Realtors.
Lawrence Yun, chief economist at the NAR, tells CNBC, "Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low," adding, "Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months."
Home prices are still higher compared with a year ago. The median price of an existing home sold in January was $247,500. But that is just 2.8 percent higher compared with January 2018, the smallest annual gain since February 2012.
But here's the rub: The supply of affordable homes for sale is not increasing quickly enough. That is why sales of homes priced below $100,000 were nearly 15 percent lower compared with a year ago, while sales of homes priced above $750,000 were just 2 percent lower.
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