"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 inventory registered at the end of January was 1.18 million units, up 3.5 percent from December and 16.8 percent 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 percent from one year ago ($378,600). All four U.S. regions registered price increases.
