US Existing Home Sales Fall 8.4% in January

Sales of previously owned homes in the United States plunged in January, dropping to a seasonally adjusted annual rate of 3.91 million units, the National Association of Realtors reported Thursday. The figure marked an 8.4 percent decline from December and a 4.4 percent decrease from January a year earlier, the largest monthly drop since early 2022.

The slowdown affected all regions, with sales falling year-over-year nationwide. The West saw the steepest decline at 7.9 percent compared to January 2023, followed by drops in the South, Midwest and Northeast. Economists had anticipated a milder decrease of around 4.6 percent, but the results fell short of expectations amid a combination of factors. Harsh winter weather, including below-normal temperatures and above-normal precipitation, likely delayed closings, particularly in the South where sales slumped 9 percent to an annualized pace of 1.8 million units. NAR Chief Economist Lawrence Yun noted that such conditions make it challenging to pinpoint underlying drivers, adding, "The decrease in sales is disappointing."

Beyond weather, high home prices and persistent affordability challenges kept many buyers sidelined, even as...