United States Home Sales Plunge

Sales of previously occupied homes in the United States fell sharply by 8.4% in January from December, reaching a seasonally adjusted annual rate of 3.91 million units, according to the National Association of Realtors. This marks the biggest monthly decline in nearly four years and falls short of economist expectations. The slump in the United States housing market, which began in 2022, is attributed to high home prices, elevated mortgage rates, and a chronic shortage of housing inventory. Despite the drop in sales, the national median sales price continued to climb, increasing 0.9% year-over-year to $396,800. Lawrence Pak, chief economist for the National Association of Realtors, noted that harsh winter weather might have contributed to the January decline. Mortgage rates, as reported by United States — Freddie Mac, briefly dropped in January but have since inched higher, maintaining affordability challenges for many prospective homebuyers.