Existing-home sales fell 4.9 percent from December to January to a seasonally adjusted annual rate of 4.08 million, according to the National Association of Realtors (NAR). Sales slipped in all regions except the Midwest, where they held steady.

By contrast, existing-home sales in January rose 2 percent from this time last year (up from 4 million in January 2024), the fourth straight monthly year-over-year increase. They increased in all regions except the South, where they remained unchanged.

“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” NAR Chief Economist Lawrence Yun said in a release. “When combined with elevated home prices, housing affordability remains a major challenge.”

Housing inventory at the end of January was 1.18 million units, up both month-over-month (by 3.5 percent) and year-over year (by 16.8 percent). Unsold inventory sat at a 3.5-month supply, up from 3.2 months in December and 3 months in January 2024.

“More housing supply allows strongly qualified buyers to enter the market,” Yun added. “But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners.”

The median existing-home price in January was $396,900, up 4.8 percent year-over-year (from $378,600). All four regions registered price increases.

According to NAR’s monthly confidence index, properties remained on the market for 41 days in January, up from 35 days in December and 36 days in January 2024.

First-time buyers were responsible for 28 percent of sales in January, down from 31 percent in December and identical to January 2024. According to NAR, the annual share of first-time buyers in 2024 was 24 percent, the lowest ever recorded.

Cash sales accounted for 29 percent of transactions in January, up slightly from December (28 percent) and down from a year ago (32 percent).

In January, existing-home sales in the Northeast fell 5.7 percent from December to January, to an annual rate of 500,000, which was up 4.2 up from January 2024. The median price in January was $475,400, up 9.5 percent year-over-year.  

In the Midwest, existing-home sales were unchanged at an annual rate of 1 million, up 5.3 percent from the previous year. The median price was $290,400, up 7.2 percent year-over-year.  

Existing-home sales in the South fell 6.2 percent from December to January, to an annual rate of 1.83 million, the same as a year ago. The median price was $356,300, up 3.5 percent year-over-year.

In the West, existing-home sales fell 7.4 percent from December to January to an annual rate of 750,000, up 1.4 percent from a year ago. The median price was $614,200, up 7.4 percent year-over-year.