Existing home sales perked up to a 5.04 million annualized rate in December, but only regained a fraction of the decline seen in November. Single-family sales returned to growth, while condos/co-ops fell.
Can’t Make Up for the Past
Existing home sales in December regained only some of the declines felt in November, with the single-family market accounting for all of the gain.
Single-family sales were up 3.5 percent from a year ago, but condos/co-ops were flat over the same period. Some of the weakness may still be an inventory issue, with the months supply now tied with its cycle low.
First-Time Buyers Retrench
Despite falling mortgage rates and a stronger labor market, the traditional home buyer has been slow to return to the housing market. The share of sales to first-time buyers fell back to 29 percent after showing some promise in November. Meanwhile, investors and all-cash buyers accounted for a larger share in the month. Stronger fundamentals should boost future sales but gains are likely to be modest.
Can’t Make Up for the Past
Existing home sales in December regained only some of the declines felt in November, with the single-family market accounting for all of the gain.
Single-family sales were up 3.5 percent from a year ago, but condos/co-ops were flat over the same period. Some of the weakness may still be an inventory issue, with the months supply now tied with its cycle low.
First-Time Buyers Retrench
Despite falling mortgage rates and a stronger labor market, the traditional home buyer has been slow to return to the housing market. The share of sales to first-time buyers fell back to 29 percent after showing some promise in November. Meanwhile, investors and all-cash buyers accounted for a larger share in the month. Stronger fundamentals should boost future sales but gains are likely to be modest.
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