Existing home sales in the United States fall sharply to their lowest level in three years

US home sales fell in January to their lowest level in more than three years and home prices rose only modestly, suggesting further declines in the housing market.

The National Association of Realtors announced Thursday that sales of existing homes had dropped 1.2% to a seasonally adjusted annual rate of 4.94 million units last month.

This is the lowest level since November 2015 and well below badysts' expectations, namely a rate of 5.0 million units. The pace of December sales was slightly revised upward.

January's fall came after months of weakness in the US real estate market. Existing home sales declined 8.5% from a year ago.

The US housing market has been dampened by the sharp rise in mortgage rates since 2016, as well as shortages of land and labor. This has led to reduced inventory and more expensive homes.

At the same time, the 30-year fixed mortgage rate has fallen in recent months and house price inflation has slowed.

The median price of existing homes rose 2.8% over last year to $ 247,500 in January. This is the smallest increase since February 2012.

Last month, sales of existing homes fell in three of the country's four major regions, increasing only in the northeast.

There were 1.59 million previously owned homes in January, up from 1.53 million in December.

At the pace of January sales, it would take 3.9 months to deplete the current stock, compared to 3.7 months in December. An offer of six to seven months is considered a good balance between supply and demand.