Home listings fell 0.8% from December but were up 3.4% year over year

January home sales fell 8.4%, the biggest drop since February 2022, the National Association of Realtors (NAR) reported yesterday.

Even as mortgage rates have declined, improving affordability in recent months, home sales were at 4.4%. A typical home sold was on the market for 46 days in January, up from 41 days a year earlier.

According to NAR, cold weather and elevated prices halted recent sales gains.

Home listings fell 0.8% from December but were up 3.4% year over year.

Median home prices rose 0.9% year over year to $396,800, but due to wage growth and lower mortgage rates, they are more affordable now.