U.S. home resales fell sharply in January to their lowest level in nine months amid a shortage of properties on the market, a setback that could temper expectations for an acceleration in housing activity this year, Reuters reports.
The National Association of Realtors announced this morning that existing home sales declined 4.9% to an annual rate of 4.82 million units, the lowest level since April last year.
“The general tone of this report was weak and it adds to a wide array of housing indicators that have been pointing in the wrong direction, underscoring continued sluggishness in this crucial segment of the economy,” Millan Mulraine, deputy chief economist at TD Securities in New York, tells Reuters.
Sales fell in all four regions. Revisions to sales data going back to 2012 were minor. Sales slumped last month despite a decline in mortgage rates, which saw the 30-year rate hitting a 20-month low. Tight inventories are hurting sales by limiting the selection of houses available to potential buyers. The lack of supply is also keeping house prices elevated, helping to sideline first-time buyers from the market.
Housing has so far lagged the overall economic recovery. Economists polled by Reuters had forecast existing home sales falling only to a 4.97-million unit pace last month. Sales were up 3.2% from a year ago. Read the full story.
