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1st Look at Local Housing Markets in January
Early reports suggest NAR reported sales will rebound to mid-4 million range in January
This is the first look at local markets in January. I’m tracking about 40 local housing markets in the US. Some of the 40 markets are states, and some are metropolitan areas. I’ll update these tables throughout the month as additional data is released.
Closed sales in January were mostly for contracts signed in November and December. Since 30-year fixed mortgage rates were over 6% for all of November and December closed sales were down significantly year-over-year in January, however, the impact was probably not as severe as for closed sales in December (rates were the highest in October and November 2022 when contracts were signed for closing in December).
For review on mortgage rates, here is a table of the Freddie Mac Primary Mortgage Market Survey® data (includes points, so lower than the rate with no point rates).
Median sales prices for single family homes were down 2.3% year-over year (YoY) in Las Vegas, and down 3.5% YoY in San Diego and up 0.4% YoY in the Northwest (Seattle).
Active Inventory in January
Here is a summary of active listings for these housing markets in January.
Inventory in these markets were down 31% YoY in January a year ago and are now up 113% YoY! So, this is a significant change from early 2022, and about the same YoY inventory increase as in December (up 117% YoY).
New Listings in January
And here is a table for new listings in January. For these areas, new listings were down 19.8% YoY. Potential sellers that are locked into their current homes with low mortgage rates has pushed down new listings.
Last month, new listings in these markets were down 32.7% YoY. This is a significantly smaller YoY decline in new listings, and something to watch. Realtor.com is showing a much smaller YoY decline in new listings in January too.
Closed Sales in January
And a table of January sales.
In January, sales were down 35.9%. In December, these same markets were down 42.1% YoY Not Seasonally Adjusted (NSA).
This is a smaller YoY decline than in December for these early reporting markets. The early data suggests NAR reported sales will rebound in January to the mid-4 million range (Seasonally adjusted annual rate) from 4.02 million SAAR in December.
This will still be a significant YoY decline, and the 17th consecutive month with a YoY decline.
Note: Even if existing home sales activity bottomed in December, there are usually two bottoms for housing - the first for activity and the second for prices. See Has Housing "Bottomed"?
Many more local markets to come!
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