Existing-Home Sales Decline
The National Association of Realtors reported that existing-home sales fell by 8.4% in January. Despite the sales decrease, the report noted that housing affordability has improved for the seventh consecutive month.
- The 8.4% monthly decline in existing-home sales translates to a seasonally adjusted annual rate of 3.91 million units. This figure is also down 4.4% from the same period a year ago. - Affordability has improved primarily due to wage gains outpacing the growth in home prices, coupled with mortgage rates that are lower than they were a year prior. The NAR's Housing Affordability Index reached its highest point since March 2022. - Despite the drop in sales, the median price for an existing home rose to $396,800, a 0.9% increase from the previous year, marking 31 consecutive months of year-over-year price hikes. This is a new record high for the month of January. - The inventory of unsold existing homes saw a slight decrease of 0.8% from the previous month to 1.22 million units. This represents a 3.7-month supply at the current sales pace. - Sales activity declined in all four major U.S. regions month-over-month, with the West experiencing the largest drop at 10.3%. Year-over-year sales also fell across all regions. - NAR Chief Economist Lawrence Yun suggested that unusually cold temperatures and higher-than-average precipitation in January may have contributed to the sales decline, making it difficult to determine if the drop is an anomaly. - First-time homebuyers accounted for 31% of sales in January, an increase from both the previous month (29%) and the same month last year (28%). - The average 30-year fixed mortgage rate in January 2026 was 6.10%, the lowest it has been in over a year. As of February 12, 2026, the rate was 6.09%.
