carpenters work on building new townhomes that are still under construction while building material supplies are in high demand in tampa florida us may 5 2021 reutersoctavio jonesfile photo washington feb 18reuters  us home sales unexpectedly rose in january but investors paying in cash are squeezing out firsttime buyers amid record low inventory and higher prices existing home sales rebounded 67 to a seasonally adjusted annual rate of 650 million units last month the national association of realtors said on friday sales rose in all four regions economists polled by reuters had forecast sales decreasing 10 to a rate of 610 million units home resales which account for the bulk of us home sales fell 23 on a yearonyear basis strong demand for housing against the backdrop of a strengthening labor market and massive savings is outstripping supply curbing sales builders have been unable to significantly ramp up construction because of shortages and higher prices for inputs like softwood lumber for framing as well as cabinets garage doors countertops and appliances according to a report this week from the national association of homebuilders delivery of these products was taking months raising construction costs and delaying projects the commerce department reported on thursday that the backlog of homes approved for construction but yet to be started surged to a record in january read more tight supply is keeping house prices elevated the median existing house price increased 154 from a year earlier to 350300 in january sales remained concentrated in the upper price end on the market firsttime buyers accounted for 27 of sales last month compared to 33 a year ago individual investors or secondhome buyers who make up many cash sales purchased 22 of homes in january up from 15 a year ago allcash sales accounted for 27 of transactions in january compared to 19 in january 2021 there were a record low 860000 previously owned homes on the market last month down 165 from a year ago at januarys sales pace it would take an alltime low 16 months to exhaust the current inventory down from 19 months a year ago a sixtosevenmonth supply is viewed as a healthy balance between supply and demand housing could become less affordable especially for some firsttime buyers with mortgage rates rising to levels not seen since 2019 they however remain low by historical standards mortgage rates are climbing as the federal reserve is expected to start increasing interest rates next month to tame high inflation economists are anticipating as many as seven rate hikes this year in january houses typically remained on the market for 19 days down from 21 days from a year ago seventynine percent of homes sold last month were on the market for less than a month