Existing home sales began 2026 in decline, according to data from the National Association of Realtors (NAR).
During January, existing home sales were down by 8.4% month-over-month to a seasonally adjusted annual rate of 3.91 million. On a year-over-year measurement, sales were down by 4.4%. Month-over-month and year-over-year sales dropped in all four major regions.
“The decrease in sales is disappointing. 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,” said NAR Chief Economist Lawrence Yun. “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.”
Yun added, “However, supply has not kept pace and remains quite low. Due to low supply, the median home price reached a new high for the month of January. Homeowners are in a financially comfortable position as a result. Since January 2020, a typical homeowner would have accumulated $130,500 in housing wealth.”
NAR also noted January’s total housing inventory of 1.22 million units was down 0.8% from December and up 3.4% from January 2025 (1.18 million). The 3.7-month supply of unsold inventory was up from 3.5 months recorded in both December and one year ago.
The $396,800 median existing home price for all housing types was up 0.9% from one year ago ($393,400). January marked the 31st consecutive month of year-over-year price increases. Despite the rising median existing home price, NAR’s Housing Affordability Index rose to 116.5 in January, up from 111.6 in December 2025 and 102.0 one year ago.
During January, 31% of sales were first-time homebuyers, up from 29% in December and 28% one year ago. Only 16% of last month’s transactions involved individual investors or second-home buyers, down from 18% last month and 17% one year ago. And a mere 2% of sales were distressed sales, unchanged from December and down from 3% in January 2025.
