Existing Home Sales Down by Nearly 5%

Existing home sales sank in January by 4.9% from December to a seasonally adjusted annual rate of 4.08 million, according to data from the National Association of Realtors (NAR). On a year-over-year measurement, sales inched up by 2.0% from 4 million in January 2024.

Regionally, sales were down month-over-month in three of the four major regions – the Midwest held steady. Year-over-year, three regions recorded sales increases while the South remained unchanged.

The total housing inventory at the end of January was 1.18 million units, up 3.5% from December and 16.8% from one year ago (1.01 million). Unsold inventory was at a 3.5-month supply at the current sales pace, up from 3.2 months in December and 3.0 months in January 2024.

The median existing-home price for all housing types in January was $396,900, up 4.8% from the $378,600 recorded one year ago. All four regions registered price increases. Cash sales accounted for 29% of transactions in January, up from 28% in December but down from 32% in January 2024.

First-time buyers were responsible for 28% of sales in January, down from 31% in December 2024 and identical to January 2024.

“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” said NAR Chief Economist Lawrence Yun. “When combined with elevated home prices, housing affordability remains a major challenge.”