US existing home sales drop to more than two-year low in January

Core Insights - U.S. existing home sales fell to the lowest level in over two years, with an 8.4% drop in January to a seasonally adjusted annual rate of 3.91 million units, below economists' expectations of 4.18 million units [1][2] Group 1: Sales Performance - Home sales decreased 4.4% year-over-year, reflecting a significant decline in market activity [2] - The decrease in sales is attributed to low inventory levels, despite improving affordability conditions due to wage gains and lower mortgage rates [3] Group 2: Inventory and Pricing - Existing home inventory fell by 0.8% to 1.22 million units, although it was up 3.4% compared to the previous year [5] - The median existing home price rose by 0.9% year-over-year to $396,800, marking the highest price for any January [5] - At the current sales pace, it would take 3.7 months to exhaust the existing home inventory, an increase from 3.5 months a year ago [5] Group 3: Buyer Demographics - First-time buyers represented 31% of sales, an increase from 28% a year ago, indicating a slight improvement in market participation [6] - All-cash sales accounted for 27% of transactions, down from 29% a year ago, while distressed sales made up 2% of transactions, down from 3% [6]