Slow inventory recovery, coupled with major snowstorms across half of the country, put a massive halt on existing-home sales in January, according to the latest data from the National Association of Realtors® (NAR).
NAR’s Existing-Homes Sales report for January found that sales fell 8.4% to a rate of 3.91 million, a large reversal from last month’s 5.1% increase and the biggest monthly decrease seen since February 2022. Year-over-year sales were down 4.4%.
NAR Chief Economist Lawrence Yun pointed directly to the large showstorms during the month as a definite proponent for the decrease, but noted they weren’t the only factor.
“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,” he said.
Bright MLS Chief Economist Lisa Sturtevant looked to other factors besides weather to explain the data, noting that pending sales had already slowed in December as “many buyers stayed on the sidelines, waiting not just for lower rates but also rate stability.”
“Therefore, the January closed sales numbers are really reflecting conditions buyers encountered during December,” she continued.
Realtor.com® Chief Economist Danielle Hale also agreed that weather was not the only factor, as the decrease was felt across all four regions:
Sales in the Northeast fell 5.9% to a rate of 480,000 (down 4.0% year-over-year), with a median sales price of $505,400 (up 5.8% from January 2025). The Midwest saw a 7.1% decrease in sales to a rate of 920,000 (down 7.1% year-over-year), with a median sales price of $295,400 (up 2.3% from January 2025). Sales in the South fell 9% to a rate of 1.81 million (down 1.6% year-over-year), with a median sales price of 351,200 (up 0.1% from January 2025). The West saw a 10.3% decrease to a rate of 700,000 (down 7.9% year-over-year), with a median sales price of $600,400 (down 1.4% from January 2025).
“In January, Realtor.com found that inventory recovery stalled and in many markets in the West and South where inventory exceeded the pre-pandemic benchmark, inventory moved back toward the benchmark,” said Hale. “If sustained, this could suggest price firming and less regional divergence in the months ahead.”
The different housing segments also saw decreases across the board. Single-family home sales fell 9% to a rate of 3.53 million (down 4.3% from January 2025), with a median home price of $400,300 (up 0.6% from last year). Condo and co-op sales fell 2.6% to a rate of 380,000 (down 5% from last year), with a median sales price of $364,600 (up 3.8% from January 2025).
Inventory also saw a slight decrease of 0.8% to 1.22 million units (equal to 3.7 months’ supply). However, this was up 3.4% from January 2025’s 1.18 million.
The median home price saw a slight increase of 0.9% year-over-year to $396,800, the 31st consecutive month of year-over-year price increases. Yun explained that due to lower supply, “the median home price reached a new high for the month of January,” putting homeowners in a “financially comfortable position.”
“Since January 2020, a typical homeowner would have accumulated $130,500 in housing wealth,” he continued. “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.”
Looking ahead, Jason Waugh, president of Coldwell Banker Affiliates, noted that “the broader picture shows signs of stability as we move toward Spring.” He and others agreed that the spring market will be a bright light at the end of the long winter tunnel.
“Buyers will find a more favorable market as we head into spring. More inventory, lower rates and slower price growth will give buyers more room for negotiation,” said Sturtevant. “Market conditions will vary depending on what part of the country you are in. There will likely be more sales in the Southeast and Southwest where inventory has climbed, while tight supply will continue to be a constraint on home sales in some Midwestern and Northeastern markets.”
Waugh concluded that overall, “homebuyers should find the 2026 spring season more accessible than a year ago.”
“The housing market is at an important inflection point. Improving affordability is opening the door for more first-time buyers, and years of healthy home price appreciation have put many sellers in a strong enough position to move forward with confidence,” he continued. “The opportunity now is to turn this stability into action, whether that means right-sizing, relocating, or making a first purchase, anchored by the realities of each local market.”
