January Monthly Market Comparison-HAR Report
January became the tenth consecutive month of negative sales, as the market recovers from strong economic headwinds, including inflation, elevated interest rates, pricing and lower inventory. Year-over-year single-family home sales fell 29.9 percent, but when compared to January 2020, just before the pandemic, sales were down only 4.6 percent; compared to January 2018, five years ago, sales were up 1.9 percent.
The monthly housing measurements for January offer a mixed bag of readings. In addition to the drop in single-family home sales, total property sales and total dollar volume fell; single-family pending sales declined by 14.9 percent. Active listings (the total number of available properties) remained 63.4 percent ahead of their level a year ago.
Months of inventory continued to improve, growing to a 2.7-months supply in January. Housing inventory nationally stands at a 2.9-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply is generally considered to make up a “balanced market” in which neither the buyer nor the seller has an advantage.