Anticipation Rates Will Rise Soon Drives Big Jump in January Home Sales

Source: CUToday

Likely driven by anticipation rates will rise, existing-home sales rose in January, making a “notable move upward following a previous month where sales declined,” according to the National Association of Realtors.

In addition, the average price for a home in January was 15% higher than one year earlier, with some regions of the country seeing even bigger price increases.

On a month-over-month basis, each of the four major U.S. regions experienced an increase in sales in January, according to the NAR, but year-over-year, activity was mixed as two regions reported sagging sales, another watched sales increase and a fourth region remained flat.

"Existing home sales jumped in January to its highest point in a year, further depleting inventory,” said Curt Long, chief economist and vice president of research with NAFCU. “Homes for sale at the end of the period dropped to an all-time low of 860,000.