U.S. Pending Home Sales Declined in January
Pending home sales in the U.S. decreased by 0.8% in January compared to the previous month, according to the National Association of REALTORS®. On a year-over-year basis, sales of homes under contract were down 0.4%, indicating a slight cooling in the housing market to start the year.
- All four major U.S. regions saw a month-over-month decrease in sales, with the West experiencing the largest drop at 10.3%, followed by the South at 9%, the Midwest at 7.1%, and the Northeast at 5.9%. - This decline in contract signings follows a sharp 8.4% drop in closed existing-home sales in January, which reached their lowest level since November 2024. - NAR Chief Economist Lawrence Yun suggested that below-normal temperatures and above-normal precipitation in January may have contributed to the slowdown, making it difficult to assess the underlying market drivers. - Despite the sales dip, the median price for existing homes set a new record for the month of January at $396,800, marking the 31st consecutive month of year-over-year price increases. - Total housing inventory stood at 1.22 million units at the end of January, which is a 3.4% increase from the previous year but remains significantly below pre-pandemic levels. This represents a 3.7-month supply at the current sales pace; a market is generally considered balanced with a 4.5 to 6-month supply. - Affordability has shown signs of improvement for seven straight months, with the NAR's Housing Affordability Index at its highest since March 2022, attributed to wage gains outpacing home price growth and lower mortgage rates compared to a year ago. - The average 30-year fixed mortgage rate was 6.09% as of February 12, 2026, down from 6.87% at the same time the previous year, potentially encouraging some buyers. - Properties typically remained on the market for 46 days in January, an increase from 39 days in December and 41 days in January of the prior year.
