In January, the sales volume of existing homes in the United States saw a significant drop of 8.4% compared to December of the previous year. Despite this decrease, reports within the real estate industry indicate that housing affordability in the United States has been improving for the seventh consecutive month, marking it as the most affordable period for housing since March 2022.
On February 12, the National Association of Realtors (NAR) released the Existing-Home Sales Report. The statistical data revealed an 8.4% decline in existing-home sales in January, with all regions experiencing a decrease in home sales both on a monthly and yearly basis. The Chief Economist of NAR mentioned that unusual weather conditions in January may have impacted transaction contracts, making it harder to assess the underlying reasons for the decline in sales. The data for the report was sourced from information provided by real estate agents, buyers, and sellers regarding sales volume, prices, and inventory.
Dr. Lawrence Yun, Chief Economist at NAR, expressed disappointment over the sales decline but emphasized that housing affordability is on the rise. Dr. Yun mentioned that the abnormally low temperatures and increased rainfall in January made it harder to evaluate the root causes of the sales decrease and determine whether the data for the month was an anomaly.
The Housing Affordability Index by NAR indicates that the current period is the most affordable for housing since March 2022. This improvement is attributed to wage growth outpacing housing price increases and mortgage rates being lower than a year ago, although the supply continues to be insufficient.
Due to the limited supply, the median home price in January reached a new high. Homeowners are in a financially stable position as the median net worth of homeowners has accumulated to approximately $130,500 since January 2020.
The Housing Affordability Index published by NAR shows that the affordability index in the United States has been improving for the seventh consecutive month, reaching 116.5 in January, higher than December 2025’s 111.6 and 102 a year ago.
The report states that housing affordability has increased across all regions in the United States. The Northeast saw a 9% increase, the Midwest a 12.2% increase, the South a 15.2% increase, and the West experienced the largest increase of 17.1%.
In January, the total housing inventory in the United States was 1.22 million units, a 0.8% decrease from December of the previous year, but a 3.4% increase compared to January 2025. The unsold inventory of homes equated to 3.7 months of supply, higher than both December of the previous year and a year ago at 3.5 months.
The median home sale price in January (all types) was $396,800, a 0.9% increase from $393,400 a year ago. The median price for single-family homes was $400,300, with a 0.6% year-on-year increase, while the median price for condominiums stood at $364,600, showing a 3.8% increase from the previous year.
The report also provides information on mortgage rates. According to Freddie Mac data, the average interest rate for a 30-year fixed-rate mortgage in January was 6.10%, lower than December of the previous year at 6.19% and 6.96% a year ago.
Currently, the percentage of first-time homebuyers among all buyers is increasing, reaching 31% in January, higher than 29% in December and 28% a year ago.