(Kitco News) - Spot gold is trading sideways this morning after the latest data showed the U.S. housing market deteriorating beyond expectations last month.
Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 8.4% to a seasonally adjusted annual rate of 3.91 million in January, the National Association of Realtors (NAR) announced on Thursday.
The data was far worse than expected, as the forecast of economists called for a smaller decrease to 4.18 million. November’s total was revised to 4.27 million units. Year-over-year, sales were down 4.4% from January of 2025.
Spot gold continued to trade near the middle of its daily range in the minutes following the 10 am EST release, and last traded at $5,063.81 for a loss of 0.40% on the day at the time of writing.
The report showed sales decreased in all four regions, both month-over-month and year-over-year.
“The decrease in sales is disappointing. The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of the decrease and determine if this month’s numbers are an aberration,” said NAR Chief Economist Dr. Lawrence Yun. “Affordability conditions are improving, with NAR’s Housing Affordability Index showing that housing is the most affordable it’s been since March 2022. This is due to wage gains outpacing home price growth and mortgage rates being lower than a year ago. However, supply has not kept pace and remains quite low.”
Total housing inventory was 1.22 million units in January, with unsold inventory standing at a 3.7-month supply.
"Inventory levels remain tight,” Yun added. "With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February."
The median existing-home price for all housing types in January was $396,800, marking the 30th consecutive month of year-over-year price increases.
