Core Insights - Sales of previously occupied U.S. homes fell sharply in January, with an 8.4% decline from December to a seasonally adjusted annual rate of 3.91 million units, marking the largest monthly drop in nearly four years [1][2] - Year-over-year, sales decreased by 4.4% compared to January of the previous year, falling short of the expected pace of 4.105 million units [2] - The U.S. housing market has been experiencing a sales slump since 2022, attributed to rising mortgage rates, high home prices, and a chronic shortage of homes [4] Sales Performance - Home sales slowed across all regions: Northeast, Midwest, South, and West [2] - Sales have remained close to a 4-million annual pace since 2023, significantly below the historical norm of 5.2 million annual sales [5] Home Prices - Despite the decline in sales, the national median sales price increased by 0.9% in January from a year earlier, reaching $396,800, marking 31 consecutive months of annual price increases [3] Mortgage Rates - The average rate on a 30-year mortgage briefly dropped to 6.06% in January, the lowest since September 2022, but has since risen slightly, remaining just above 6% [6] Affordability Challenges - Affordability continues to be a significant challenge for many potential homeowners, particularly first-time buyers lacking equity from previous homes [7] - Economic and job market uncertainties are also contributing to the hesitation among prospective buyers [7]

Core Insights - The US housing market continues to experience a slump, with sales remaining at a 30-year low, totaling 4.06 million homes sold in 2025, unchanged from 2024, marking a decline every year since 2022 [1][4][5] - The median national home price increased by 1.7% to $414,400 in 2025, indicating persistent high prices despite low sales [2] - The average rate on a 30-year mortgage was around 7% a year ago but fell to close to 6% by the end of 2025, contributing to a slight increase in sales in December [6][8] Sales Performance - Sales of previously occupied homes have been stagnant at around a 4-million annual pace since 2023, significantly below the historical norm of 5.2 million [4] - December 2025 saw existing home sales rise to a seasonally adjusted annual rate of 4.35 million units, a 5.1% increase from November, marking the fastest sales pace in nearly three years [6][8] - Despite the increase in sales in December, the overall trend remains negative, with sales having declined annually since 2022 [1][5] Price Trends - The median sales price in December 2025 reached $405,400, a 0.4% increase from December 2024, continuing a streak of 30 consecutive months of annual price increases [8][9] - The rise in home prices, coupled with elevated mortgage rates, continues to challenge affordability for many potential buyers, particularly first-time homebuyers [9] Economic Conditions - The housing market slump is attributed to rising mortgage rates that began in 2022, which have kept many prospective buyers out of the market [5] - Uncertainty regarding the economy and job market is also contributing to the hesitance of potential buyers to enter the housing market [9]