Home sales drop sharply as prices hit an all-time high for January

[Zincwarrior]

Sales of homes dropped in January, down 4.9% from December, while home prices rose 4.8%. Thoughts USMB? Will the current tariff threats help the housing market?

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• Sales of previously-owned homes fell 4.9% in January from the prior month, according to the National Association of Realtors.
• There were 1.18 million homes for sale at the end of January, an increase of 3.5% from December and 17% from January 2024.
• The median price of a home sold in January was $396,900, up 4.8% from the year before and the highest price ever for the month of January.

The U.S. housing market continues to weaken, as potential buyers face stubbornly high mortgage rates, high prices and limited supply of listings.

Sales of previously-owned homes fell 4.9% in January from the prior month to 4.08 million units on a seasonally-adjusted, annualized basis, according to the National Association of Realtors. Analysts were expecting a 2.6% decline.




Sales were 2% higher than January 2024, but are still running at a roughly 15-year low.

This read is based on closings, so contracts likely signed in November and December when mortgage rates came down from over 7% to the 6% range.

“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” said Lawrence Yun, chief economist for the NAR. “When combined with elevated home prices, housing affordability remains a major challenge.”

There were 1.18 million homes for sale at the end of January, an increase of 3.5% from December and 17% from January 2024. Although inventory is gaining, it is still at a 3.5-month supply at the current sales pace. A 6-month supply is considered balanced between buyer and seller.

The average home for sale last month spent 41 days on the market. That is the longest since January 2020, pre-Covid.




Tight supply continues to pressure prices. The median price of a home sold in January was $396,900, up 4.8% from the year before and the highest price ever for the month of January. All four regions tracked by NAR saw price gains. About 15% of homes sold above list price, virtually unchanged from 16% in both the pervious month and the year-earlier period.

 

[Papageorgio]

We can hope it starts bring housing costs down from where Trump had them to where Biden moved them. It used to be you had to have an income of $75000 per year to buy a home and under Biden it went to over $120,000 per year. So it is going to be awhile to right a ship, cutting government spending will help as will trying to bring energy cost down.

 

[citygator]

Great news for home owners. Bad news for home buyers.

 

[1srelluc]

I'm not a bit surprised since the .gov grift money dried-up. Lower home prices will soon follow.

The housing market was long overdue for a big correction and hopefully it's starting.

The fired .gov weenies in DC and NotVA are in for a rude awaking if they think they are gonna get what they think they are gonna get. Realtors are panicking.

Oh and it's not great news for home owners as houses are sitting unsold longer. They will have to lower their expectations price wise.

 

[citygator]

We can hope it starts bring housing costs down from where Trump had them to where Biden moved them. It used to be you had to have an income of $75000 per year to buy a home and under Biden it went to over $120,000 per year. So it is going to be awhile to right a ship, cutting government spending will help as will trying to bring energy cost down.

No offense but that is a silly post. Neither of those will fix the cost of a house in a market where the demand is more than the supply. Relaxing zoning rules to allow more cost effective high density projects is the best way to lower housing costs but what home owner will vote for that shit?

 

[citygator]

I'm not a bit surprised since the .gov grift money dried-up. Lower home prices will soon follow.

The housing market was long overdue for a big correction and hopefully it's starting.

The fired .gov weenies in DC and NotVA are in for a rude awaking if they think they are gonna get what they think they are gonna get. Realtors are panicking.

Oh and it's not great news for home owners as houses are sitting unsold longer. They will have to lower their expectations price wise.

I would be very shocked if housing prices fall UNLESS Trump drives us into a recession. - which is likely. There just isnt enough supply for prices to crash.

 

[Foxfyre]

Sales of homes dropped in January, down 4.9% from December, while home prices rose 4.8%. Thoughts USMB? Will the current tariff threats help the housing market?

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I doubt tariff talk is affecting the housing market. Biden's insane last minute spending spree in December and January probably had some effect though and definitely pushed inflation higher.

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[1srelluc]

I would be very shocked if housing prices fall UNLESS Trump drives us into a recession. - which is likely. There just isnt enough supply for prices to crash.

If they sit unsold for long enough prices will come down. I suspect the only reason they remain high is due to speculation and that will soon dry-up.

The average home for sale last month spent 41 days on the market. That is the longest since January 2020, pre-Covid.

Nobody is competing for housing like this time last year when you would have multiple offers in a day or two.....41 days would have been unheard of last year.

Other than haggling back and forth for a bit I had my mom's home sold the day it was listed.

One aspect that has been removed from the market is "remote work" as more and more people are being forced return to the office. They could afford an overpriced home if they did not have to have a vehicle, insurance, and gas costs to contend with.....Never mind the increased tax burden living closer to a city or a area like DC Metro..

 

[Papageorgio]

No offense but that is a silly post. Neither of those will fix the cost of a house in a market where the demand is more than the supply. Relaxing zoning rules to allow more cost effective high density projects is the best way to lower housing costs but what home owner will vote for that shit?

You meant offense, so lie one. If demand decreases housing prices will decrease, simple economics.

 

[Concerned American]

I'm not a bit surprised since the .gov grift money dried-up. Lower home prices will soon follow.

The housing market was long overdue for a big correction and hopefully it's starting.

The fired .gov weenies in DC and NotVA are in for a rude awaking if they think they are gonna get what they think they are gonna get. Realtors are panicking.

Oh and it's not great news for home owners as houses are sitting unsold longer. They will have to lower their expectations price wise.

They flooded the economy with money with the covid stimulus, doubling of the minimum wage. Inflation followed. It will take time for the economy to stabilize. The housing market will not recover until the construction industry can depend on that stabilized economy and can start massive building efforts. Supply and demand--it ain't rocket science.

 

[jwoodie]

Will the current tariff threats help the housing market?

What is you rationale for this proposition?

 

[citygator]

If they sit unsold for long enough prices will come down. I suspect the only reason they remain high is due to speculation and that will soon dry-up.

The average home for sale last month spent 41 days on the market. That is the longest since January 2020, pre-Covid.

Nobody is competing for housing like this time last year when you would have multiple offers in a day or two.....41 days would have been unheard of last year.

Other than haggling back and forth for a bit I had my mom's home sold the day it was listed.

One aspect that has been removed from the market is "remote work" as more and more people are being forced return to the office. They could afford an overpriced home if they did not have to have a vehicle, insurance, and gas costs to contend with.....Never mind the increased tax burden living closer to a city or a area like DC Metro..

41 days is pretty low compared to history. You are looking only during constrained times. Pre-pandemic average was 54 days.

 

[citygator]

You meant offense, so lie one. If demand decreases housing prices will decrease, simple economics.

Why would you want to crash demand ? That is silly - again. What you want is more supply, not less demand. Geez.

 

[citygator]

They flooded the economy with money with the covid stimulus, doubling of the minimum wage. Inflation followed. It will take time for the economy to stabilize. The housing market will not recover until the construction industry can depend on that stabilized economy and can start massive building efforts. Supply and demand--it ain't rocket science.

People used their $1,700 checks to go buy houses?! Not sure how to respond to thinking that doubled wages or whatever you were trying to say.

 

[John Edgar Slow Horses]

The increase in sales will drmatically drop by late spring.

 

[1srelluc]

41 days is pretty low compared to history. You are looking only during constrained times. Pre-pandemic average was 54 days.

So, it looks like we are just getting back to normal.....Not a bad thing.

 

[Ringo]

Home Depot still worth more than all the European start ups created in the past 50 years combined. Home Depot alone.

 

[g5000]

We can hope it starts bring housing costs down from where Trump had them to where Biden moved them.

Trump bragged about record high home prices during his first term.

Trump Administration Accomplishments – The White House

trumpwhitehouse.archives.gov

• Home prices hit an all-time record high.

With the exception of the Great Recession, home prices have risen every year since at least 1965.

Dipshit.

 

[John Edgar Slow Horses]

No, home prices have not deeply dropped. In fact, as of January 2025, home prices in the United States have increased by 4.0% year-over-year, with a median price of $417,968. While the number of homes for sale has risen by 12.1%, the market remains competitive, and prices are holding steady1.

redfin.com

 

[Mashmont]

Sales of homes dropped in January, down 4.9% from December, while home prices rose 4.8%. Thoughts USMB? Will the current tariff threats help the housing market?

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Um. It's called winter?