In January, sales of previously owned homes saw a 3.1% rise, reaching 4 million units on a seasonally adjusted annualized basis, as reported by the National Association of Realtors. The sales were supported by lower mortgage interest rates that were prevalent in November and December. The inventory of homes for sale in January increased to 1.01 million units, up by 3.1% from the previous year, but still representing a low 3-month supply in the market.

The median price for existing homes of all types in January hit an all-time high for the month at $379,100, showcasing a 5.1% increase from the previous year. Lawrence Yun, the chief economist for the NAR, mentioned that while sales remain lower compared to previous years, January's increase signals the beginning of a more balanced supply and demand scenario in the market. Yun also highlighted that lower mortgage rates played a role in attracting homebuyers, with rates dropping from a recent high of 8% in October to around 6.6% in mid-December.

The report noted that the all-cash share of January 2024 home sales was 32%, up from 29% last year in January, marking the highest level in almost a decade. However, first-time buyers only made up 28% of the sales, which is lower than historical averages due to a shortage of lower-priced homes in the market.

In terms of market performance, all four U.S. regions experienced price increases, with 16% of homes selling above the listed price. Additionally, a separate report from Redfin showed a 10% increase in new listings year over year in the four weeks ending February 18. However, signed contracts were down by 7% from the previous year, indicating some market challenges despite the sales boost in January.