U.S. sales of previously-owned homes fell sharply in January, dropping 8.4% month-to-month and 4.4% below January 2025, raising alarm about market stability, said Lawrence Yun, chief economist at the National Association of Realtors. According to the report, Yun called the situation “a new housing crisis.”
The decline was nationwide, with the largest sales falls in the South and West. This was the biggest monthly drop since February 2022.
The median U.S. home price in January was about $397,000, up 0.9% year-over-year. Homes also took longer to sell, averaging 46 days on market versus 41 days a year earlier.
Sales fell across price bands below $1 million, while the $1 million-plus segment was the only category showing a year-over-year gain. The split highlights a growing gap between affluent buyers and other households.
Yun said renters remain constrained, noting they are “still struggling” and “renters are not participating in housing wealth,” limiting buyer turnout. The report also flagged broader economic pressures, including job risk from the AI sector, as additional strain on housing demand.
