US Existing Home Sales Fall 8.4% in January as Prices Remain High

Existing home sales in the United States dropped sharply in January, falling 8.4% from December to an annualised rate of 3,91,00,000 units, according to the National Association of Realtors. 

January Existing Home Sales Drop 8.4% 

The decline represents the largest monthly fall in almost four years and the slowest annualised pace in more than two years. Compared with January last year, sales were 4.4% lower, missing the 41,05,000 pace economists had forecast. 

Price Trends Remain Elevated 

Despite the sales slump, the national median sales price rose 0.9% year‑on‑year to $3,96,800. Prices have increased for 31 consecutive months, keeping affordability pressures high for many buyers. 

Mortgage Rate Movements 

The average rate on a 30‑year mortgage briefly fell to 6.06% in January, the lowest level since September 2022, before edging back above 6% later in the week. The rate remains roughly one percentage point below the level seen a year earlier. 

Read More: Stronger January Hiring: US Adds 1,30,000 Jobs; 2024–25 Payrolls Revised Down Heavily! 

Inventory Levels and Regional Variation 

At month‑end there were 12,20,000 unsold homes, a 0.8% decline from December but a 3.4% rise from January last year.  

This translates to a 3.7‑month supply, well short of the 5‑ to 6‑month range considered balanced. All regions saw slower sales, with the West experiencing the steepest annual and monthly declines. 

First‑Time Buyer Share Declines 

First‑time buyers accounted for 31% of transactions in January, down from their typical 40% share, indicating heightened difficulty for renters seeking homeownership. 

Conclusion 

January’s data show a sharp contraction in existing home sales amid persistently high prices and modestly lower mortgage rates. Inventory remains limited, and first‑time buyer participation has fallen, suggesting continued challenges for the housing market. 

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