(Kitco News) - Gold prices have fallen to session lows after the latest data showed the U.S. housing market improved above expectations in December.
Existing home sales rose 3.1% last month against expectations for a 3% increase, and following a revised -0.8% print in December, according to National Association of Realtors (NAR) data published on Thursday morning.
Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – rose to a seasonally adjusted annual rate of 4 million in January, up from the revised 3.88 million in December. Year-over-year, sales fell 1.7% compared to January 2023.
Among the four major U.S. regions, sales rose month-over-month in the Midwest, South, and West and were unchanged in the Northeast. Only the West saw a year-over-year sales increase.
“While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand,” said NAR Chief Economist Lawrence Yun. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
Total housing inventory was 1.01 million units at the end of January, up 2% from December and up 3.1% from the 980,000 units recorded one year ago. Unsold inventory currently sits at a 3-month supply at the current sales pace, down from 3.1 months in December but up from 2.9 months in January of 2022.
The median existing-home price for all housing types in January was $379,100, an increase of 5.1% from the $360,800 posted in January 2023. All four U.S. regions saw price increases.
“The median home price reached an all-time high for the month of January,” Yun added. “Multiple offers are common on mid-priced homes, and many homes were still sold within a month. The elevated share of cash deals – 32% – indicated a market full of multiple offers and propelled by record-high housing wealth.”
Economists continue to pay close attention to the U.S. housing market as it is a major contributor to economic activity. The housing sector has struggled as the Federal Reserve has aggressively raised interest rates at the fastest pace in 40 years.
Gold prices fell following the housing data, with spot gold declining to a session low of $2,020.21 in the minutes following the 10 am EST release, and last traded at $2,021.78 at the time of writing, down 0.21% on the day.
