Existing Home Sales: Continued Declines, Pace of Declines Eases

Bottom Line: Existing home sales fell further to start 2023, countering expectations for a slight increase. On the plus side, the pace of the slowdown has started to lose downward momentum on a trend basis. The price of the average transaction fell about 2% in the month, the seventh straight month of price declines. But supply remains tight with inventory little changed and the months' supply (sales/inventory) still historically low at 2.9 months. Overall, housing remains weak and continues to rebalance, finding a new equilibrium amid high mortgage rates. While it is too early to call a bottom, there are at least some indications that the pace of declines is slowing.Existing Home Sales FELL -0.03 million annualized units to 4, BELOW the 3-Month average of 4.05, BELOW the 6-Month average of 4.34, and -2.34 BELOW the year-ago level.
 
Single-family sales FELL -0.03 million annualized units to 3.59, BELOW the 3-Month average of 3.63, BELOW the 6-Month average of 3.88, and -2.03 BELOW the year-ago level.
 
Median prices nationwide FELL -7.5k dollars to 359, BELOW the 3-Month average of 366.07, BELOW the 6-Month average of 375.37 but 4.7 ABOVE the year-ago level.

Inventory ROSE 0.02 million units to 0.98, BELOW the 3-Month average of 1.02, BELOW the 6-Month average of 1.13 but 0.13 ABOVE the year-ago level.

Months supply was unchanged at 2.9, BELOW the 3-Month average of 3.03, BELOW the 6-Month average of 3.13 but 1.3 ABOVE the year-ago level.