Existing-home sales dip one point five percent in December 2022 MABA MassBuyerAgents MassachusettsRealEstate FirstTimeHomeBuyers

Existing-home sales fell for the eleventh month in a row in December as house prices rose for the one hundred and thirtieth consecutive month, the longest streak of gains on record, the National Association of REALTORS® said. Month over month, existing-home sales, which include single-family homes, townhomes, condominiums and co-ops, slid one point five percent to an annual rate of 4.02 million, which is thirty four percent lower than the year before. The median existing-home price for all housing types in December was $366,900, representing a two point three percent rise from the year before.

 “December was another difficult month for buyers, who continue to face limited inventory and high mortgage rates,” NAR Chief Economist Lawrence Yun said in a press release. “However, expect sales to pick up again soon, since mortgage rates have markedly declined after peaking late last year.” The thirty year fixed-rate mortgage averaged six point fifteen percent as of January 19th, down from six point thirty three percent a week before but up from three point fifty six percent a year earlier, according to Freddie Mac. “While house-buying power remains $141,000 lower than one year ago, house buyers are rate-sensitive, and the incremental improvement in house-buying power is enough to entice some buyers back into the market,”

 First American Financial chief economist Mark Fleming said. “From a financial perspective, the decision to buy a home comes down to a payment-to-paycheck calculation, and lower rates may help to reduce the mortgage payment while higher incomes can increase one’s monthly paycheck.” Total housing inventory at the end of December was 970,000 units, a thirteen point four percent decrease on a month-over-month basis and a ten point two percent gain on a year-over-year basis. At the current sales pace, unsold inventory represented a 2.9-month supply, down from 3.3 months in November and up from 1.7 months in December 2021.

 Properties typically remained on the market for twenty six days in December, up from twenty four days in November and nineteen in December 2021. Fifty-seven percent of homes sold in December were on the market for less than a month. By property type, single-family home sales in December slid to a seasonally adjusted annual rate of 3.6 million, down one point one percent from 3.64 million in November and down thirty three point five percent from a year earlier.

 The median existing single-family home price was $372,700, up two percent on a year-over-year basis. Existing condominium and co-op sales came in at a seasonally adjusted annual rate of 420,000 units in December, down four point five percent from November and thirty eight point two percent compared to December 2021. The median existing condo price rose three point three percent year over year to $317,200.

The post NAR: Existing-home sales dip 1.5% in December  appeared first on Boston Agent Magazine.

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