Dive Brief:
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Sales of existing homes slowed to their lowest pace in nine months in January, the National Association of Realtors reported on Monday.
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The report also noted that the median price for existing single-family homes, townhouses, condominiums and co-ops was $199,600 in January, 6.2% higher than in January 2014. NAR said January 2015 marked the 35th consecutive month of year-over-year price gains.
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NAR Chief Economist Lawrence Yun blamed the slow sales on a combination of winter weather and a lack of inventory. “Realtors are reporting that low [interest] rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions,” Yun said in a press release.
Dive Insight:
Combined with sluggish inventory of newly built, single-family homes, the lack of existing homes for sale could dash the chances that the housing recovery will quicken this year, as economists have predicted.
Slim inventory means potential buyers have fewer choices and could be less likely to invest. It also leads to higher prices, which could shut down first-time buyers who are looking for affordable starter homes.