Existing Home Sales Start 2017 on High Note

Mark Vitner Wells Fargo

Existing home sales started the year on a strong note, with sales climbing 3.3 percent in January to a 5.69 million-unit pace. Home prices also perked up, with the median price rising 7.1 percent over the past year.

Existing Home Sales Are Off to a Strong Start

Existing home sales rose slightly faster than expected in January, rising 3.3 percent to a 5.69 million-unit annual rate. Sales for December were also revised slightly higher. Home sales are now running at their strongest pace since the recession. Median home prices also rose faster than expected.
The strong start to the year suggests that realtors’ commissions should make a larger contribution to first quarter growth.

Inventories Remain Exceptionally Lean

Inventory of single-family homes remained relatively unchanged at a 3.6 months’ supply. The persistence of historically low forsale inventory is a big reason why prices continue to consistently beat expectations to the upside.
Unseasonably mild winter weather throughout much of the East and South might get the spring selling season off to an early start. Sales in the Sunbelt appear to have strong momentum.

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Author

Mark Vitner

Wells Fargo

Mark Vitner is a managing director and senior economist at Wells Fargo, responsible for tracking U.S. and regional economic trends.

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