Existing-home sales fell 8.4% in January to a seasonally adjusted annual rate of 3.91 million, according to the National Association of Realtors.
Sales declined in every region, both month over month and year over year.
The median home price rose to $396,800, marking the 31st consecutive month of annual price increases.
Sales of existing homes plunged in January as harsh winter weather and limited inventory weighed on the housing market, even as affordability showed signs of improvement.
Total existing-home sales dropped 8.4% from December to a seasonally adjusted annual rate of 3.91 million, according to the National Association of Realtors. Compared with January 2025, sales were down 4.4%.
“The decrease in sales is disappointing,” said NAR Chief Economist Dr. Lawrence Yun. “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.”
Prices rise despite slower sales
Even as sales cooled, home prices continued to climb. The median existing-home price for all housing types rose 0.9% from a year earlier to $396,800 — a new high for the month of January and the 31st straight month of year-over-year gains. That suggests homes that sold were more expensive.
Dr. Yun said tight supply continues to support prices.
“Due to low supply, the median home price reached a new high for the month of January,” he said. “Homeowners are in a financially comfortable position as a result. Since January 2020, a typical homeowner would have accumulated $130,500 in housing wealth.”
Total housing inventory stood at 1.22 million units at the end of January, down 0.8% from December but up 3.4% from a year earlier. Unsold inventory represented a 3.7-month supply at the current sales pace, up from 3.5 months in December and one year ago.
Affordability improved for seventh straight month
Despite rising prices, affordability improved for the seventh consecutive month. NAR’s Housing Affordability Index increased to 116.5 in January, up from 111.6 in December and 102.0 a year ago.
The gains were seen across all regions, with affordability rising 9% in the Northeast, 12.2% in the Midwest, 15.2% in the South, and 17.1% in the West.
Dr. Yun attributed the improvement to wage growth outpacing home price gains and lower mortgage rates compared with a year ago. The average 30-year fixed-rate mortgage was 6.10% in January, down from 6.19% in December and 6.96% in January 2025, according to Freddie Mac.
“Affordability conditions are improving, with housing the most affordable it’s been since March 2022,” Dr. Yun said. “However, supply has not kept pace and remains quite low.”
Single-family, condo sales decline
Single-family home sales fell 9.0% month over month to a 3.53 million annual rate, down 4.3% from a year ago. The median single-family home price rose 0.6% year over year to $400,300.
Condominium and co-op sales declined 2.6% from December to a 380,000 annual rate, a 5.0% drop from January 2025. The median condo price increased 3.8% from a year ago to $364,600.
All four regions posted monthly and annual declines in sales.
Northeast: Sales fell 5.9% from December to an annual rate of 480,000, down 4.0% year over year. The median price climbed 5.8% to $505,400.
Midwest: Sales decreased 7.1% to a 920,000 annual rate, down 7.1% from a year earlier. The median price rose 2.3% to $295,400.
South: Sales dropped 9.0% to 1.81 million, down 1.6% year over year. The median price edged up 0.1% to $351,200.
West: Sales slid 10.3% to 700,000, down 7.9% from January 2025. The median price declined 1.4% to $600,400 — the only region to see an annual price decrease.
Homes also took longer to sell. Properties remained on the market for a median of 46 days in January, up from 39 days in December and 41 days a year ago.
First-time buyers accounted for 31% of sales, up from 29% in December and 28% a year earlier. Cash sales made up 27% of transactions, slightly below both last month and last year.