Jan 2026: U.S. Existing Home Sales Fall 8.4% from December as Low Inventory Limits Recovery

Existing home sales in January 2026 fell 8.4% from December, annualized below 4 million, keeping activity near three-decade lows despite historically low mortgage rates averaging 6.1%. “The decrease in sales is disappointing,” said Lawrence Yun, chief economist at the National Association of Realtors (NAR). Inventory remains far below pre-pandemic averages, with January median home prices at $396,800, up 0.9% from a year earlier. Low supply and elevated prices limited affordability, while a cold, wet January likely depressed new listings. Economists project improved conditions once weather warms, but meaningful gains in sales activity are expected to be capped by persistent supply constraints and moderate price appreciation.