(Kitco News) - Gold prices are continuing to hold support above $2,930 per ounce after the latest data showed the U.S. housing market declining beyond expectations in January.
Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 4.9% to a seasonally adjusted annual rate of 4.08 million in January, the National Association of Realtors (NAR) announced on Friday. The data was far worse than expected, as the forecast of economists called for a -1.7% drop to 4.16 million. December’s total was revised up to 4.29 million from 4.24 million units. Year-over-year, sales were up 2.0% from January 2024.
Spot gold last traded at $2,930.01 for a loss of 0.32% on the day at the time of writing.
“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve," said NAR Chief Economist Lawrence Yun. "When combined with elevated home prices, housing affordability remains a major challenge.”
The report noted that existing-home sales fell in three major U.S. regions but held steady in the Midwest. Year-over-year, sales rose in three regions and were unchanged in the South.
Total housing inventory stood at 1.18 million units at the end of January, up 3.5% from December and 16.8% from the 1.01 million in January 2024. Unsold inventory now sits at a 3.5-month supply at the current sales pace, up from 3.2 months in December and 3.0 months in January 2024.
“More housing supply allows strongly qualified buyers to enter the market," Yun added. "But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners.”
The median existing-home price for all housing types was $396,900 in January, up 4.8% from $378,600 one year ago. All four U.S. regions registered price increases.
