Existing home sales fell in January to a more than two-year low after December’s strong rebound, as tight inventory continued to push home prices higher and winter storms weighed on activity. Despite mortgage rates trending lower and wage growth outpacing price gains, limited resale supply kept many buyers on the sidelines. Resale inventory remained at lowest level since January 2025. Though home price appreciation has slowed in recent months, affordability remains a challenge.
Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 8.4% to a seasonally adjusted annual rate of 3.91 million in January, according to the National Association of Realtors (NAR). This marks the lowest level since August 2024. On a year-over-year basis, sales were 4.4% lower than a year ago.
The existing home inventory level was 1.2 million units in January, down 0.8% from December but up 3.4% from a year ago. At the current sales rate, January unsold inventory sits at a 3.7-months’ supply, up from 3.5-months in December and January 2024. Inventory between 4.5 to 6 months’ supply is generally considered a balanced market.
Homes stayed on the market for a median of 46 days in January, up from 39 days in the previous month and 41 days in January 2025.
The first-time buyer share was 31% in January, up from 29% in December and 28% from a year ago.
The January all-cash sales share was 27% of transactions, down from 28% in December and 29% a year ago. All-cash buyers are less affected by changes in interest rates.
The January median sales price of all existing homes was $396,800, up 0.9% from last year. This marks the new high for the month of January and the 31st consecutive month of year-over-year increases. The median condominium/co-op price in January was up 3.8% from a year ago at $364,600. Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2026.
Sales declined in all four major regions in January, ranging from 5.9% in the Northeast to 10.3% in the West. On a year-over-year basis, sales also fell across all regions, from 1.6% in the South to 7.9% in the West.
The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 79.2 to 71.8 in December after four months of increases. On a year-over-year basis, pending sales were 3.0% lower than a year ago, according to the National Association of Realtors’ data. The decline suggests buyers are holding back due to limited inventory choices.
This article was originally published by a eyeonhousing.org . Read the Original article here. .
