According to the National Association of Realtors, sales of existing residential homes dropped 4.9 percent in January, seasonally adjusted to an annual rate of 4.82 million properties. The Association stated this is the lowest level of sales since April 2014.
Moderately low mortgages rates, along with a positive job market, have not yet ignited the speculated activity from potential home buyers and sellers, increasing the possibility that a spring sales boom could ensue, or the second continuous year of a stagnant real estate market. Some market experts speculate that the traffic of potential buyers into open houses is being slowed by snowstorms and dreadful winter weather. The addition of over one millions jobs over the previous financial quarter has failed to put life into already-weak sales.
Residential homes were turned over 3.2 percent faster than January 2014, though that increase mostly reflects the terrible winter weather at the start of last year that stagnated home-buying and caused turmoil in the U.S. economy. Ian Shepherdson, chief economist at Pantheon Macroeconomics, stated the weather has not been as a factor as it was in 2014, though the underlying trend of sales is still flat.
By Alex Lemieux
Photo by Maggie Tacheny – Flickr License