W
ASHINGTON (February 21, 2025) - Existing-home sales declined in January, according to the National Association of REALTORS. Sales fell in three major U.S. regions and remained steady in the Midwest. Year-over-year, sales increased in three regions and were unchanged in the South.
Total existing-home sales dropped 4.9% from December to a seasonally adjusted annual rate of 4.08 million in January. However, year-over-year sales improved by 2.0%. "Mortgage rates have been stagnant for several months despite interest rate cuts by the Federal Reserve," said NAR Chief Economist Lawrence Yun. "Combined with high home prices, housing affordability remains a significant challenge."
The total housing inventory at the end of January was 1.18 million units, up 3.5% from December and 16.8% from one year ago. Unsold inventory sits at a 3.5-month supply, up from 3.2 months in December and 3.0 months in January 2024.
The median existing-home price for all housing types in January was $396,900, up 4.8% from the previous year. All four U.S. regions reported price increases.
Properties typically remained on the market for 41 days in January, up from 35 days in December and 36 days in January 2024. First-time buyers accounted for 28% of sales in January, down from 31% in December but identical to January 2024.
Cash sales made up 29% of transactions in January, up from 28% in December but down from 32% in January 2024. Individual investors or second-home buyers purchased 17% of homes in January, up from 16% in December and unchanged from January 2024.
Distressed sales represented 3% of sales in January, virtually unchanged from December and the previous year. The 30-year fixed-rate mortgage averaged 6.85% as of February 20, down from 6.87% one week ago and 6.90% one year ago.
Regional Breakdown:
* Existing-home sales in the Northeast fell 5.7% from December to an annual rate of 500,000, up 4.2% from January 2024.
* Sales in the Midwest remained unchanged at an annual rate of 1 million, up 5.3% from the previous year.
* Existing-home sales in the South declined 6.2% from December to an annual rate of 1.83 million, identical to one year before.
* Sales in the West slumped 7.4% in January to an annual rate of 750,000, up 1.4% from a year ago.
The median price in the Northeast was $475,400, up 9.5% from one year earlier. The median price in the Midwest was $290,400, up 7.2% from January 2024. The median price in the South was $356,300, up 3.5% from last year. The median price in the West was $614,200, up 7.4% from January 2024.
