January Sees Major Decline in U.S. Existing Home Sales
In January 2026, U.S. existing-home sales experienced a significant decline of 8.4% from December, totaling a seasonally adjusted annual rate of 3.91 million homes, marking the slowest pace in over two years and the largest monthly drop since early 2022, according to the National Association of Realtors (NAR).
The median existing home price rose to approximately $396,800 in January, reflecting a 0.9% increase year-over-year, despite easing mortgage rates. The average rate for a 30-year fixed mortgage was around 6.1%, a decrease from 6.9% in early 2025. Additionally, the housing market’s tight inventory is evident, with only a 3-4 month supply compared to a balanced market’s typical 5-6 month supply.
As existing home sales stagnate, new home construction is gaining attention, with homebuilder companies like Toll Brothers and PulteGroup hitting new 52-week highs. Building permits for new construction rose by 4.3% to a rate of 1.45 million in December, exceeding Wall Street’s expectations and signaling a potential recovery in the homebuilding sector.
