US Existing-Home Sales Fell 8.4% in January
The National Association of Realtors reported that existing-home sales decreased by 8.4% in January. Despite the drop in sales volume, the report also noted that housing affordability improved for the seventh consecutive month. The data reflects ongoing shifts in the U.S. housing market.
- The sales drop translates to a seasonally adjusted annual rate of 3.91 million units, which is 4.4% lower than the previous year and the slowest sales pace in over two years. - Despite the decrease in sales, the median existing-home price rose 0.9% from a year ago to $396,800, marking the 31st consecutive month of year-over-year price increases. - Total housing inventory was 1.22 million units, which is a 3.7-month supply at the current sales pace. This is up from 3.5 months in December and a year ago. - NAR Chief Economist Lawrence Yun suggested that unusually cold temperatures and high precipitation in January may have contributed to the sales decline, making it difficult to assess the underlying trend. - All four major U.S. regions saw a decline in sales month-over-month and year-over-year, with the West experiencing the largest drop despite not being affected by severe weather. - The NAR's Housing Affordability Index increased to 116.5 in January, the highest it has been since March 2022. An index value of 100 means a median-income family has exactly enough income to qualify for a mortgage on a median-priced home. - This report follows a period in late 2025 where falling mortgage rates had spurred modest sales increases, hinting at a potential market thaw that did not continue into the new year. - A typical homeowner has accumulated significant housing wealth, estimated at $130,500 since January 2020, due to the consistent rise in home prices.
