Existing-Home Sales Decreased 4.9% in January, But Increased Year-Over-Year for Fourth Consecutive Month

WASHINGTON (February 21, 2025) – Existing-home sales retreated in January, according to the National Association of REALTORS®. Sales slipped in three major U.S. regions and held steady in the Midwest. Year-over-year, sales rose in three regions and were unchanged in the South.

Total existing-home sales¹ – completed transactions that include single-family homes, townhomes, condominiums and co-ops – descended 4.9% from December to a seasonally adjusted annual rate of 4.08 million in January. Year-over-year, sales improved 2.0% (up from 4 million in January 2024).

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

Total housing inventory² registered at the end of January was 1.18 million units, up 3.5% from December and 16.8% from one year ago (1.01 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in December and 3.0 months in January 2024.

"More housing supply allows strongly qualified buyers to enter the market," Yun added. "But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners."

The median existing-home price  for all housing types in January was $396,900, up 4.8% from one year ago ($378,600). All four U.S. regions registered price increases.

REALTORS® Confidence Index

According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 41 days in January, up from 35 days in December and 36 days in January 2024.

First-time buyers were responsible for 28% of sales in January, down from 31% in December 2024 and identical to January 2024. NAR's 2024 Profile of Home Buyers and Sellers – released November 2024  – found that the annual share of first-time buyers was 24%, the lowest ever recorded.

Cash sales accounted for 29% of transactions in January, up from 28% in December but down from 32% in January 2024.

Individual investors or second-home buyers, who make up many cash sales, purchased 17% of homes in January, up from 16% in December and unchanged from January 2024.

Distressed sales – foreclosures and short sales – represented 3% of sales in January, virtually unchanged from December and the previous year.

Mortgage Rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.85% as of February 20. That's down from 6.87% one week ago and 6.90% one year ago.

Single-family and Condo/Co-op Sales

Single-family home sales declined 5.2% to a seasonally adjusted annual rate of 3.68 million in January, up 2.2% from the previous year. The median existing single-family home price was $402,000 in January, up 5.0% from January 2024.

Existing condominium and co-op sales faded 2.4% in January to a seasonally adjusted annual rate of 400,000 units, identical to one year ago. The median existing condo price was $349,500 in January, up 2.9% from the prior year ($339,500).

Regional Breakdown

In January, existing-home sales in the Northeast waned 5.7% from December to an annual rate of 500,000, up 4.2% from January 2024. The median price in the Northeast was $475,400, up 9.5% from one year earlier.

In the Midwest, existing-home sales were unchanged in January at an annual rate of 1 million, up 5.3% from the previous year. The median price in the Midwest was $290,400, up 7.2% from January 2024.

Existing-home sales in the South fell 6.2% from December to an annual rate of 1.83 million in January, identical to one year before. The median price in the South was $356,300, up 3.5% from last year.

In the West, existing-home sales slumped 7.4% in January to an annual rate of 750,000, up 1.4% from a year ago. The median price in the West was $614,200, up 7.4% from January 2024.

About the National Association of REALTORS®

As America's largest trade association, the National Association of REALTORS® is involved in all aspects of residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor.

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For local information, please contact the local association of REALTORS® for data from local multiple listing services (MLS). Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

NOTE: NAR's Pending Home Sales Index for January will be released February 27, and Existing-Home Sales for February will be released March 20. Release times are 10 a.m. Eastern. See NAR's statistical news release schedule.

¹  Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau's series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally-adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

² Total inventory and month's supply data are available back through 1999, while single-family inventory and month's supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condos were measured only on a quarterly basis).

³ The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR's quarterly metro area price reports.

⁴ Survey results represent owner-occupants and differ from separately reported monthly findings from NAR's REALTORS® Confidence Index, which include all types of buyers. The annual study only represents primary residence purchases, and does not include investor and vacation home buyers. Results include both new and existing homes.

⁵ Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR's REALTORS® Confidence Index, posted at nar.realtor.