US existing home sales drop to more than two-year low in January

WASHINGTON, Feb 12 (Reuters) - U.S. existing location income tumbled to the lowest level successful much than 2 years successful January arsenic falling inventory raised location prices.

Home ‌sales dropped 8.4% past period to a seasonally adjusted yearly complaint of 3.91 ‌million units, the lowest level since December 2023, the National Association of Realtors said connected Thursday. Economists polled by ​Reuters had forecast location resales declining to a complaint of 4.18 cardinal units.

Last month's income apt reflected contracts that were signed successful November and December, and would not person been impacted by wintertime storms that slammed ample parts of the state successful January. Home income decreased 4.4% connected ‌a year-over-year basis.

"The alteration successful ⁠sales is disappointing," Lawrence Yun, the NAR's main economist said. "Affordability conditions are improving ... owed to wage gains outpacing location terms maturation and owe rates ⁠being little than a twelvemonth ago. However, proviso has not kept gait and remains rather low."

The NAR's lodging affordability scale accrued to 116.5 successful January, the highest since March 2022, from 111.6 successful ​December.

Mortgage rates ​have declined arsenic the Federal Housing Finance Agency, ​which oversees owe concern giants Fannie ‌Mae and Freddie Mac, started buying bonds issued by the 2 companies, though advancement has stalled. Mortgage rates way the benchmark 10-year Treasury yield, which has risen amid precocious inflationary pressures and worries implicit national authorities debt.

The inventory of existing homes fell 0.8% to 1.22 cardinal units. Supply was up 3.4% from a twelvemonth ago. At January's income pace, it would ‌take 3.7 months to exhaust the existent inventory of ​existing homes, up from 3.5 months a twelvemonth ago.

The ​median existing location terms past period ​rose 0.9% from a twelvemonth agone to $396,800, the highest for immoderate January. ‌The median days connected the marketplace for ​listed properties accrued to ​46 from 41 a twelvemonth ago.

First-time buyers accounted for 31% of sales, up from 28% a twelvemonth ago. Economists and realtors accidental a 40% stock successful this class ​is needed for a robust ‌housing market. All-cash income constituted 27% of transactions, down from 29% a twelvemonth ​ago.

Distressed sales, including foreclosures, made up 2% of transactions, down from 3% a twelvemonth ​ago.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)