US Existing Home Sales Drop Sharply January/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. existing home sales fell 8.4% in January. Sales declined despite easing mortgage rates. Home prices continued rising for the 31st straight month.
US Home Sales January Decline – Quick Looks
- Existing home sales fell 8.4% in January
- Annual sales pace: 3.91 million units
- Down 4.4% compared to January 2025
- Median home price: $396,800 (up 0.9%)
- Housing market remains in multi-year slump
Deep Look: US Existing Home Sales Sink in January Despite Easing Mortgage Rates
Sales of previously owned U.S. homes dropped sharply in January, even as mortgage rates showed signs of easing, underscoring the continued strain in the nation’s housing market.
According to the National Association of Realtors, existing home sales fell 8.4% from December to a seasonally adjusted annual rate of 3.91 million units. The figure also represented a 4.4% decline compared with January of last year.
The January sales pace came in below economists’ expectations of 4.105 million units, based on forecasts compiled by FactSet.
Broad-Based Regional Slowdown
Home sales retreated across all four major U.S. regions — the Northeast, Midwest, South and West — signaling that the slowdown was widespread rather than isolated to one area.
“The decrease in sales is disappointing,” said Lawrence Yun, chief economist for the Realtors association. Yun noted that unusually cold temperatures and heavier-than-normal precipitation in January may have distorted buying patterns, making it difficult to determine whether the drop represents a short-term weather-related dip or a deeper market trend.
Prices Continue to Rise
Despite weaker sales activity, home prices continued their steady climb. The national median existing-home price rose 0.9% from a year earlier to $396,800 in January.
That marks 31 consecutive months of year-over-year price gains — a streak that highlights persistent supply constraints in the housing market.
Long-Running Housing Slump
The U.S. housing market has struggled since 2022, when mortgage rates began rising sharply from the record lows seen during the pandemic. Although borrowing costs have moderated recently, affordability remains a significant challenge.
Years of rapid home price growth, combined with limited housing inventory and more than a decade of below-average new construction, have kept many potential buyers sidelined. As a result, existing-home sales last year hovered near 30-year lows.
Even with slightly improved mortgage rates, many buyers continue to face high monthly payments and limited inventory — factors that could keep sales subdued in the months ahead.
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