February 13, 2026

USA Home Sales in January 2026 Posted Biggest Monthly Decline in Nearly Four Years

U.S. existing-home sales fell 8.4% in January to a seasonally adjusted annual rate of 3.91 million, marking the largest monthly decline since February 2022. The drop followed gains in three of the previous four months and was steeper than economists had expected. Severe winter weather, fragile consumer confidence, high home prices, and limited inventory all contributed to the slowdown. While mortgage rates have eased from roughly 6.9% a year ago to about 6.1%, affordability remains strained, and concerns about the broader economy have made buyers more cautious.

Despite the sales decline, home prices continued to edge higher due to historically tight supply. The national median existing-home price rose 0.9% year over year to $396,800. Inventory slipped slightly from December but was modestly higher than a year earlier, giving buyers somewhat more breathing room. Homes stayed on the market longer — a median of 46 days compared with 41 days last year — and nearly two-thirds of buyers in 2025 paid below the original listing price, reflecting softer negotiating conditions.

Lower borrowing costs have reduced typical monthly payments, with Zillow estimating that a buyer putting 20% down would pay about $1,733 per month, down 8.4% from a year earlier. Some agents report renewed buyer interest as rates ease, and recent purchasers describe a less frantic process than during the pandemic-era boom. Still, with prices elevated and economic sentiment uneven, the spring selling season will be critical in determining whether the housing market regains momentum or remains subdued.

ARTICLE SOURCE : https://www.wsj.com/economy/housing/homes-sales-in...

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