"Existing home sales sank 8.4% last month from December to a seasonally adjusted annual rate of 3.91 million units, the National Association of Realtors said Thursday. That's the biggest monthly decline in nearly four years and the slowest annual sales pace in more than two years. Sales fell 4.4% compared with January last year. The latest sales figure fell short of the 4.105 million pace economists were expecting, according to FactSet."
"The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. The combination of higher mortgage rates, years of skyrocketing home prices and a chronic shortage of homes nationally following more than a decade of below-average home construction have left many aspiring homeowners priced out of the market."
Existing home sales dropped 8.4% in January to a seasonally adjusted annual rate of 3.91 million, the largest monthly decline in nearly four years and the slowest pace in over two years. Sales declined 4.4% year-over-year and missed economists' expectations of a 4.105 million pace. Sales slowed across all regions, with the West posting the largest monthly and annual declines. Below-normal temperatures and above-normal precipitation in January likely reduced activity and complicate assessment. The national median sales price rose 0.9% year-over-year to $396,800, marking 31 consecutive months of annual price increases. A sustained slump since 2022 reflects higher mortgage rates, prolonged price gains, and a chronic shortage of available homes, with typical lags between contract signings and finalized sales.
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