U.S. Housing Market

The National Association of Realtors reported Thursday that existing U.S. home sales fell 8.4% from December to January 2026, the steepest monthly decline in four years and far worse than economists’ expectations of a 4.6% drop, even as standard affordability metrics improved. Sales ran at a seasonally adjusted annual rate of 3.91 million, down 4.4% from a year earlier, with the sharpest regional declines in the West (10.3%), South (9%) and Midwest (7.1%), while the Northeast bucked the trend with a 5.9% gain. NAR chief economist Lawrence Yun said housing is now the most affordable it has been since March 2022 because wage gains are outpacing home‑price increases and mortgage rates are lower than a year ago, but he stressed that inventory remains "quite low" and that cold, snowy January weather and broader economic jitters likely kept buyers on the sidelines. Single‑family home sales dropped 9%, underscoring ongoing pressure in the core ownership segment, yet the national median existing‑home price still rose 0.9% year‑over‑year to $396,800, marking the 31st straight month of price increases. The figures highlight the paradox many Americans see on the ground: on paper, buying conditions are better than during the recent mortgage‑rate spike, but tight supply and uncertainty about jobs, prices and Trump‑era economic policy are keeping the market frozen.