Existing home sales hit 18-month low

|By:, SA News Editor

Existing-home sales at a 4.62M seasonally adjusted pace in January fell 5.1% from December and hit an 18-month low, according to the NAR.

Surprising no one by blaming the weather, the NAR's Larry Yun reminds not to ignore the headwinds of tight credit, limited inventory, higher prices, and higher interest rates.

The median existing-home sales price of $188,900 rose 10.7% from a year ago. Distressed sales accounted for 15% of January action vs. 24% a year ago.

Inventory: Up 2.2% to 1.9M homes, or a 4.9-month supply at the current sales pace. A supply of 6-6.5 months is considered a rough balance between buyers and sellers.

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