Existing-home sales fell to a seasonally adjusted annual rate of 4.08 million in January, down 4.9% compared with December but up 2.0% compared with January 2024, according to the National Association of Realtors (NAR).
It was the fourth straight monthly year-over-year increase.
The median existing-home sale price increased to $396,900, up 4.8% from January 2024.
It was the 19th consecutive month of year-over-year price increases, according to NAR’s data.
The inventory of unsold existing homes increased 3.5% from the prior month to 1.18 million. That’s about a 3.5-month supply at the current monthly sales pace.
Regionally, and month-over-month, existing-home sales fell 5.7% in the Northeast, 6.2% in the South, and 7.4% in the West. They were flat month-over-month in the Midwest.
“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” says Lawrence Yun, chief economist for NAR, in a statement. “When combined with elevated home prices, housing affordability remains a major challenge.”
In a positive sign for the housing market, total inventory is up 16.8% from one year ago.
“More housing supply allows strongly qualified buyers to enter the market,” Yun says. “But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners.”
In January, properties typically remained on the market for 41 days, up from 35 days in December and up from 36 days in January 2024.
Photo: Gustavo Zambelli