U.S. Home Sales Post Sharp Drop in January

2026-02-15 07:30:35

(MENAFN) U.S. existing-home transactions plummeted in January, marking the steepest monthly contraction in nearly three years, according to Thursday's report from the National Association of Realtors (NAR).

Seasonally adjusted sales velocity reached an annualized pace of 3.91 million units last month, representing an 8.4 percent monthly collapse—the most severe downturn recorded since February 2022, NAR figures confirmed.

Year-over-year comparisons revealed a 4.4 percent retreat from January 2025 levels, extending the sector's extended weakness.

NAR Chief Economist Lawrence Yun expressed concern over the deterioration while acknowledging measurement complications. "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," Yun stated.

Despite enhanced affordability metrics driven by wage growth and declining mortgage rates, Yun noted inventory constraints continue hampering market recovery, with available housing stock remaining severely depressed.

Median transaction prices for previously owned residences advanced 0.9 percent annually in January, NAR data indicated.

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