Existing-home sales decreased by 8.4% in January, according to the National Association of REALTORS®’ Existing-Home Sales Report. Month-over-month and year-over-year sales fell in all regions.
While sales declined, affordability improved across all regions for the seventh consecutive month, increasing to 116.5 in January from 111.6 in December and 102 a year ago.
Affordability improved in every region year over year, offering some relief to buyers despite slower sales activity:
- Northeast +9%
- Midwest +12.2 %
- South +15.2%
- West +17.1%
There were 1.22 million units in January, down 0.8% from December and up 3.4% from January 2025. There was a 3.7-month supply of unsold inventory, up from 3.5 months in December and one year ago, according to the report.
The median for existing-home prices was $396,800, up 0.9% from one year ago. This represents the 31st consecutive month of year-over-year price increases.
Single-family homes
Single-family homes saw a 9.0% decrease in sales month over month to a seasonally adjusted annual rate of 3.54 million, down 4.3% from January 2025. The median home price was $400,300, up 0.6% from last year.
Mortgage rates
Mortgage rates offered some relief to buyers to start the year, with the average 30-year fixed rate at 6.10% in January, according to Freddie Mac. That’s down from 6.19% in December and significantly lower than 6.96% a year ago.
Regional existing-home sales
Existing-home sales pulled back across all four regions month over month, with the sharpest decline in the West, where sales fell 10.3% to an annual pace of 700,000 and were down 7.9% year over year. The Midwest saw a 7.1% monthly drop to 920,000 sales, down 7.1% annually, while the Northeast declined 5.9% from the prior month and 4.0% from a year ago. In the South, sales slipped 9.0% month over month but were only 1.6% lower than last year.
Prices, however, continued to show resilience in most regions. The Northeast led annual gains, with the median price rising 5.8% to $505,400. The Midwest posted a 2.3% increase to $295,400, and the South remained essentially flat, up 0.1% to $351,200. The West was the lone region to see a year-over-year price decline, with the median falling 1.4% to $600,400.
NAR Chief Economist Lawrence Yun said, “The decrease in sales is disappointing. The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of the decrease and determine if this month’s numbers are an aberration. Affordability conditions are improving, with NAR’s Housing Affordability Index showing that housing is the most affordable it’s been since March 2022. This is due to wage gains outpacing home price growth and mortgage rates being lower than a year ago. However, supply has not kept pace and remains quite low.”
“Due to low supply, the median home price reached a new high for the month of January,” Yun added. “Homeowners are in a financially comfortable position as a result. Since January 2020, a typical homeowner would have accumulated $130,500 in housing wealth.”