US Existing-Home Sales Fell 8.4% in January
What happened
Sales of existing homes in the U.S. decreased by 8.4% in January, according to a new report from the National Association of Realtors. Despite the drop in sales volume, the report noted that housing affordability improved for the seventh consecutive month.
Why it matters
- The January sales decline brought the seasonally adjusted annual rate of existing-home sales to 3.91 million, the slowest pace in over two years. This was a much larger drop than the 3.5% decrease that economists had predicted. - Despite the slowdown in sales, the median price for an existing home rose to $396,800, a 0.9% increase from January 2025. This marks the 31st consecutive month of year-over-year price increases. - Total housing inventory at the end of January was 1.22 million units, which is a slight decrease of 0.8% from December but an increase of 3.4% from one year ago. This represents a 3.7-month supply of unsold homes at the current sales pace. - NAR's Chief Economist, Dr. Lawrence Yun, suggested that unusually cold temperatures and higher-than-normal precipitation in January may have contributed to the disappointing sales figures. - The improvement in housing affordability is attributed to wage gains growing faster than home prices and mortgage rates being lower than they were a year ago. The NAR's Housing Affordability Index increased to 116.5 in January, its highest level since March 2022. - All four major U.S. regions saw a decline in both month-over-month and year-over-year sales. The West experienced the most significant drop in sales despite not being affected by severe weather. - First-time homebuyers accounted for 31% of sales in January, an increase from 29% in December and 28% one year ago.
Key numbers
- decreased by 8.4% in January, according to a new report from the National Association of Realtors.
- - The January sales decline brought the seasonally adjusted annual rate of existing-home sales to 3.91 million, the slowest pace in over two years.
- This was a much larger drop than the 3.5% decrease that economists had predicted.
- Despite the slowdown in sales, the median price for an existing home rose to $396,800, a 0.9% increase from January 2025.
What happens next
- Lawrence Yun, suggested that unusually cold temperatures and higher-than-normal precipitation in January may have contributed to the disappointing sales figures.
Quick answers
What happened in US Existing-Home Sales Fell 8.4% in January?
Sales of existing homes in the U.S. decreased by 8.4% in January, according to a new report from the National Association of Realtors. Despite the drop in sales volume, the report noted that housing affordability improved for the seventh consecutive month.
Why does US Existing-Home Sales Fell 8.4% in January matter?
The January sales decline brought the seasonally adjusted annual rate of existing-home sales to 3.91 million, the slowest pace in over two years. This was a much larger drop than the 3.5% decrease that economists had predicted. Despite the slowdown in sales, the median price for an existing home rose to $396,800, a 0.9% increase from January 2025. This marks the 31st consecutive month of year-over-year price increases. Total housing inventory at the end of January was 1.22 million units, which is a slight decrease of 0.8% from December but an increase of 3.4% from one year ago. This represents a 3.7-month supply of unsold homes at the current sales pace. NAR's Chief Economist, Dr. Lawrence Yun, suggested that unusually cold temperatures and higher-than-normal precipitation in January may have contributed to the disappointing sales figures. The improvement in housing affordability is attributed to wage gains growing faster than home prices and mortgage rates being lower than they were a year ago. The NAR's Housing Affordability Index increased to 116.5 in January, its highest level since March 2022. All four major U.S. regions saw a decline in both month-over-month and year-over-year sales. The West experienced the most significant drop in sales despite not being affected by severe weather. First-time homebuyers accounted for 31% of sales in January, an increase from 29% in December and 28% one year ago.
