The U.S. housing market stumbled to a 12-month low in January, as existing-home sales dropped sharply across every region, according to the National Association of Realtors' latest Existing-Home Sales Report. The seasonally adjusted annual rate of sales fell 8.4% from December and 4.4% from a year earlier, marking the slowest pace since December 2023, according to CNBC.
Federal Reserve Bank of St. Louis data show the monthly volume declined from 4.27 million homes in December 2025 to 3.91 million in January, with no region spared from the downturn. The Northeast saw sales slip 5.9% month over month and 4% year over year, while the Midwest registered identical 7.1% declines on both measures. The South experienced a 9% monthly drop and 1.6% annual dip, and sales in the West plunged 10.3% from December and 7.9% from January 2025.
Non-seasonally adjusted figures painted an even bleaker picture. Overall sales were down 35.5% from December and 7.1% from a year earlier. The Northeast led the declines, down 36.4% month-over-month and 9.7% year-over-year, followed by the Midwest, down 37.7% and 9.4%, respectively. The South fell 35.0% month-over-month and 4.5% annually, while the West slid 33.9% monthly and 8.9% year-over-year.
"The decrease in sales is disappointing," said NAR Chief Economist Dr. Lawrence Yun. "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."
Despite the sales slump, prices continued to climb. The national median existing-home price reached a record high in January at $396,800, up 0.9% year-over-year. Yun attributed the increase to "low supply," suggesting the slowdown was as much about scarcity as about softening demand.
Regional price trends varied. Median prices in the Northeast rose 5.8% to $505,400, and the Midwest climbed 2.3% to $295,400. The South inched up 0.1% to $351,200, while the West was the only region to post a decline, falling 1.4% to $600,400.
Yun added that affordability conditions have improved, with the group's index showing housing costs at their most manageable level since March 2020.
"This is due to wage gains outpacing home price growth and mortgage rates being lower than a year ago," he said. "However, supply has not kept pace and remains quite low."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.