Existing home sales in the United States fell 8.4% in January 2026 from the previous month, dropping to an annualized rate of 3.91 million. This was well below market expectations of 4.18 million and followed a three-year high of 4.35 million reached in December 2025. It marked the steepest monthly decline in nearly four years and the lowest sales level since September 2024.
Unsold inventory slipped 0.8% to 1.22 million units, equivalent to 3.7 months of supply.
“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 Dr. 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. However, supply has not kept pace and remains quite low.”
