The housing market began 2026 at a slower pace. Existing home sales fell 8.4% in January from December and 4.4% compared to last year, according to the National Association of REALTORS®. Economists believe harsh winter weather may have temporarily slowed activity rather than signaling a major downturn.
Even with fewer sales, conditions are improving for buyers. Affordability is the best it has been since March 2022, thanks to rising wages and slightly lower mortgage rates. First-time buyers made up 31% of sales, up from 28% last year. Home prices are still rising, but more slowly, up just 0.9% year over year.
Inventory remains limited and below pre-pandemic levels. Homes are staying on the market longer, averaging 46 days, but well-priced homes still sell quickly, with 16% selling above asking price.
For sellers, equity remains strong. The median home price hit a January record of $396,800, and homeowners have gained about $130,500 in equity since 2020. Cash buyers made up 27% of purchases.
Overall, while sales slowed due to winter and low inventory, improving affordability and steady demand suggest the slowdown may be temporary.
Source : Home Sales Slip—But an Icier Market May Help Some Buyers