U.S. existing home sales climbed to 4.0 mln annualized in January, following upward revisions to the prior months. While the 3.1% gain was the biggest jump in nearly a year, the level remains very depressed after 2023 marked the worst in well over two decades. Sales of single-family homes rebounded 3.4%, while condos haven’t increased in the past eight months. Regionally, the West and South climbed to the highest since August. The Midwest also gained, though the Northeast saw no change at all.

Amid a lack of inventory, the annual median selling price climbed 5.1% y/y. The number of homes available for sale rose 3.1% y/y. At the current pace, it would take 3.0 months to sell all homes on the market. That’s down from 3.6 in October, suggesting conditions are tightening.

Bottom Line: Existing home sales saw the biggest jump in nearly a year. Still, the resale market remains historically depressed amid elevated borrowing costs. While mortgage rates are below the 8%-peak, many existing homeowners remain reluctant to put their properties up for sale, until borrowing costs come down further. That’s keeping listings on the lean side. And, with the Fed signaling it’s in no rush to cut rates anytime soon, we expect activity in the resale market to remain muted in the first half of the year.

Table 1 - United States — Existing Home Sales

(millions of units : a.r.)

Source: BMO Economics, Haver Analytics

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