US Pending Home Sales Declined in January
Pending home sales in the U.S. decreased by 0.8% in January from the prior month, according to the National Association of REALTORS®. The report, which measures signed real estate contracts, also showed a 0.4% decline in sales year-over-year. This data indicates a slight cooling in contract activity at the start of the year.
- The January decline follows a much sharper drop in December 2025, when pending home sales fell 9.3% from the prior month, dampening short-term outlooks heading into the new year. - NAR's Chief Economist, Lawrence Yun, suggested the disappointing sales figures for *existing homes* in January could be an aberration, partially blaming below-normal temperatures and above-normal precipitation across much of the country. - While contract signings were down, housing inventory saw a 10% year-over-year increase in January; however, the recovery has stalled, with the number of available homes still 17.2% below pre-pandemic (2017-2019) levels. - Affordability has been improving, with NAR's Housing Affordability Index in January reaching its highest point since March 2022, a trend supported by wage gains outpacing home price growth. - The average 30-year fixed mortgage rate in January was approximately 6.10%, the lowest in over a year, providing some relief to potential buyers. - Despite the slow start, NAR economists are forecasting a potential 14% nationwide increase in existing-home sales for the full year of 2026, anticipating that lower mortgage rates and more inventory will unlock pent-up demand. - The median time a property spent on the market in January was 46 days, which is up from 41 days the previous year, indicating a slight cooling in the pace of sales. - First-time buyers represented 31% of sales in January, an increase from 28% in the same month a year ago, showing a growing share for this demographic despite market challenges.
