Homes sales in the United States grew to their highest level since the housing market crash, according to data analyzed by the National Association of Federally-Insured Credit Unions this week.
Despite low inventory and higher mortgage rates, existing-home sales grew 3.3 percent in January.
“Existing home sales rose in January to its highest level since February 2007,” NAFCU research assistant Yun Cohen wrote in the NAFCU Macro Data Flash, citing data from the National Association of Realtors.
“Both single family home sales and condo sales surged despite low inventory levels, rising home prices and higher mortgage rates. Affordability conditions have been declining and that trend is expected to continue,” Cohen continued in the NAFCU Macro Data Flash, a publication that goes out to members.
“Nevertheless, improving rates of household formation should support modest sales growth overall in 2017,” Cohen added.
The median existing-home price dropped to $228,900 in January from $233,300 in December, according to National Association of Realtor data. However, the median price is 7.1 percent higher than it was in January 2016. January marked the 59th consecutive month of year-over-year price increases.
The western region of the United States saw existing home prices jump 6.6 percent in January. Overall, three of the four regions saw home prices increase with only the Midwest seeing a decline of 1.5 percent.