Existing-Home Sales Declined 8.4% in January

  1. Home
  2. News
  3. Existing-Home Sales Declined 8.4% in January
Existing-Home Sales Declined 8.4% in January

Washington, DC, February 12, 2026-Existing-home sales decreased by 8.4% in January to a seasonally adjusted annual rate of 3.91 million, according to the National Association of Realtors Existing-Home Sales Report. 

The represents a 4.4% decrease in sales year over year.

According to the Wall Street Journal, this is the largest monthly decline since February 2022. 

"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,” said NAR chief economist Dr. Lawrence Yun. “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.”

Affordability improved for the seventh consecutive month, according to NAR’s Housing Affordability Index-increasing to 116.5 in January from 111.6 in December and 102 a year ago.

INVENTORY IN JANUARY

  • 1.22 million units: Total housing inventory, down 0.8% from December and up 3.4% from January 2025 (1.18 million)
  • 3.7-month supply of unsold inventory, up from 3.5 months in December and one year ago

MEDIAN SALES PRICE IN JANUARY

  • $396,800: Median existing-home price3 for all housing types, up 0.9% from one year ago ($393,400) – the 31st consecutive month of year-over-year price increases.

HOUSING AFFORDABILITY IN JANUARY

The Housing Affordability Index rose to 116.5 in January, up from 111.6 in December 2025 (and 102.0 a year ago).

Affordability improved across all regions.

Northeast +9%

Midwest +12.2 %

South +15.2%

West +17.1%

Says the Wall Street Journal, "That snapped a four-month streak of gains, the longest since 2020. Economists surveyed by The Wall Street Journal had forecast a smaller 4.6% decrease. Expensive home prices and a decrease in inventory also played a role in the sharp deceleration of sales.

"Falling mortgage rates have made home purchases more affordable in recent months, and home sales in December rose a revised 4.4%. Some real-estate agents say shopping activity picked up in January. 

"But stubbornly high home prices and average 30-year mortgage rates that are stuck above 6% are making buyers more picky, and homes are sitting longer on the market. White-collar workers worried about their jobs also tend to avoid big purchases like a new home."