In what could be contemplated as a growing uproar in a US housing market which has been anchoring the economy’s growth since last Summer alongside a sharp uptick in manufacturing output, US National Association of Realtors said in a statement earlier on Friday that US existing home sales and prices had witnessed a blowout binge again in January as housing market inventories tumbled to a record low.
In point of fact, a number of key fundamentals have been driving US home existing home sales since last Summer following a sharp downturn in Spring during the peak of pandemic outbreak including a multi-year low mortgage rate, a rush of pandemic-wary Americans into the suburbs alongside countryside amid a sweeping upsurge in the volumes of work-from-home employees and a record-low housing market inventories in the United States, while existing US home sales in January had accelerated by their steepest pace since 2006, at the peak of housing market boom, National Association of Realtor said in the statement.
US existing home sales, prices, soar in January
In tandem, according to the National Association of Realtor’s housing market data released earlier in the day, sales of previously occupied US houses surged 0.6 per cent last month to a seasonally adjusted 6.69 million units compared to the same time a year earlier, while existing home sales climbed as much as 23.7 per cent on an annualized basis.
Aside from that, with long-term mortgage rates hovering near their record-low figures and 30-year fixed home loans chartering at 2.81 per cent, an increase from a 2.73 per cent recorded a month earlier, US housing inventories had tumbled to a record low, while existing home prices rose by 14.1 per cent on a year-on-year basis last month as the median of US existing home prices was at $303,900 in January.
Besides, while NAR (National Association of Realtor) was also quoted saying in the statement that at a current pace of sales, US housing inventories would entirely rub out in an approximated 1.9 months, NAR Chief Economist Lawrence Yun said followed by the announcement, “Sales easily could have been even 20% higher if there had been more inventory and more choices”.