High real estate prices, fluctuating supply and weaker consumer confidence in the economy continue to weigh on the US real estate market. National Association of Realtors chief economist Lawrence Yun calls it a “new housing crisis.”
According to NAR, condominium sales fell a sharper-than-expected 8.4% in January compared to December to a seasonally adjusted annual rate of 3.91 million. Sales were 4.4% lower than in January 2025. That’s the slowest pace since December 2023 and the largest monthly decline since February 2022.
This figure is based on deals, contracts likely signed in November and December, when the average interest rate on the 30-year fixed-rate mortgage was little changed before falling slightly in January. According to Mortgage News Daily, that rate is now 6.1%.
Regionally, sales fell month-over-month across the country, but fell most sharply in the South and West.
“Affordability conditions are improving, with NAR’s Housing Affordability Index showing that housing is at its most affordable since March 2022,” Yun said in a news release. “This is due to wage growth outpacing house price growth and mortgage rates being lower than a year ago. However, supply has not kept up and remains quite low.”
However, in a phone call with reporters, he also noted that potential buyers are “still struggling” and “tenants are not involved in real estate assets.” He called the current market a crisis because “the movement isn’t happening. Americans are stuck.”
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Inventories fell in January compared to December, but were still up 3.4% year over year. There were 1.22 million homes for sale at the end of January, which represents 3.7 months of supply at the current sales pace. A six-month supply is considered a balanced market between buyer and seller.
Tighter supply kept property prices in positive territory. The average price of a home sold in January was $396,800, up 0.9% from a year ago and the highest January price on record.
“This leaves homeowners in a comfortable position financially. As of January 2020, a typical homeowner would have accumulated $130,500 in housing assets,” Yun added.
Homes are taking longer to sell: 46 days in January versus 41 days in January 2025. About 31% of sales were to first-time buyers, up from 28% a year ago.
Sales continue to be strongest at the top end of the market; In fact, the only price segment that was positive compared to last year was the $1 million-plus range. Sales fell the most for homes priced under $250,000.