MetroIntelligence Economic Update by P. DUFFY
Existing home sales slip for 11th straight month, but median sales price still up 2.3 percent year-on-year
Existing-home sales faded for the eleventh straight month to a seasonally adjusted annual rate of 4.02 million. Sales waned 1.5% from November and 34.0% from one year ago. The median existing-home sales price climbed 2.3% from the previous year to $366,900. Existing-home sales totaled 5.03 million in 2022, down 17.8% from 2021, as last year’s rapidly escalating interest rate environment weighed on the residential real estate market. Unsold inventory sits at a 2.9-month supply at the current sales pace, down from 3.3 months in November but up from 1.7 months in December 2021.
Housing starts slip 1.4 percent in December but rise sharply for single-family homes
Privately‐owned housing starts in December were at a seasonally adjusted annual rate of 1,382,000. This is 1.4 percent below the revised November estimate of 1,401,000 and is 21.8 percent below the December 2021 rate of 1,768,000. Single‐family housing starts in December were at a rate of 909,000; this is 11.3 percent above the revised November figure of 817,000. The December rate for units in buildings with five units or more was 463,000. An estimated 1,553,300 housing units were started in 2022. This is 3.0 percent (±2.4 percent) below the 2021 figure of 1,601,000.
Building permits fall 1.6 percent in December, down 29.9 percent year-on-year
Privately‐owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 1,330,000. This is 1.6 percent below the revised November rate of 1,351,000 and is 29.9 percent below the December 2021 rate of 1,896,000. Single‐family authorizations in December were at a rate of 730,000; this is 6.5 percent below the revised November figure of 781,000. Authorizations of units in buildings with five units or more were at a rate of 555,000 in December. An estimated 1,649,400 housing units were authorized by building permits in 2022. This is 5.0 percent below the 2021 figure of 1,737,000.