Realtors report a ‘new housing crisis’ as January home sales tank more than 8%

CNBC ^ | 02/12/2026 | Diana Olick

[SeekAndFind]

High home prices, faltering supply and weaker consumer confidence in the economy all continue to weigh on the U.S. housing market. The chief economist for the National Association of Realtors, Lawrence Yun, is calling it “a new housing crisis.”

Sales of previously owned homes in January dropped a much wider-than-expected 8.4% from December to a seasonally adjusted, annualized rate of 3.91 million, according to the NAR. Sales were 4.4% lower than January 2025. That is the slowest pace since December 2023 and the biggest monthly drop since February 2022.

This count is based on closings, so contracts that were likely signed in November and December, when the average rate on the 30-year fixed mortgage didn’t move much before dropping slightly in January. That rate is now 6.1%, according to Mortgage News Daily.

Regionally, sales fell across the nation month to month but were down the most in the South and West.

“Affordability conditions are improving, with NAR’s Housing Affordability Index showing that housing is the most affordable it’s been since March 2022,” Yun said in a release. “This is due to wage gains outpacing home price growth and mortgage rates being lower than a year ago. However, supply has not kept pace and remains quite low.”

But he also noted on a call with reporters that potential buyers are “still struggling,” and “renters are not participating in housing wealth.” He characterized the current market as a crisis because, “the movement is not happening. Americans are stuck.”

Inventory came down in January from December but was still up 3.4% year over year. There were 1.22 million homes for sale at the end of January, which at the current sales pace is a 3.7-month supply. A six-month supply is considered a balanced market between buyer and seller.

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TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: housing; realestate

[SeekAndFind]

Homes are taking longer to sell, at 46 days in January versus 41 in January 2025. About 31% of sales were to first-time buyers, up from 28% a year ago.

Sales continue to be strongest on the higher end of the market; in fact, the only price segment in the positive from a year ago was the $1 million-plus range. Sales dropped the most for homes priced below $250,000.

[SeekAndFind]

From Investors Observer:

The economics behind the freeze

Perhaps the biggest reason Americans aren’t buying is the raw math of homeownership compared to renting.

According to Redfin research, buyers need roughly $35,000 more income than renters to afford a home at current prices. The gap is the smallest it has been in three years, but so is income growth.

For now, renting simply makes more sense in several major metros, especially in former Covid hot spots across the Sun Belt. According to Reventure App, January rents declined year over year in:

Fort Myers, Florida: -9.5%

Austin, Texas: -8%

Colorado Springs, Colorado: -5.4%

San Antonio, Texas: -5%

Phoenix, Arizona: -3.9%

Tampa, Florida: -3.7%

📌 Bottom line: America’s housing market has about 500,000 more sellers than buyers. Given that the average homeowner has $130,500 in equity, there’s some room for discounts.

[FlingWingFlyer]

(((YAWN)))
We’re busy giving all our money to the Somali freeloading theives.

[Governor Dinwiddie]

When asking price meets offered price, the market will be in balance. There are lot of owners who overvalue their properties.

There is no crisis. This is how the free market works.

[ggboss]

It was cold,cold, cold.

[aquila48]

Great news! That should help the “affordability crisis”

[KingofZion]

too bad for them. the whole 6% commission sales model is outdated as is the industry. there will probably be half as many realtors after the next downturn and nobody will miss them.

[econjack]

I agree...there is no crisis. Indeed, I think this is simply buyers sitting on the sidelines to see what happens to mortgage rates in the next few months. Also, families with kids in school tend to wait until the school year finishes if the move means a new school district.

[TexasGator]

“For now, renting simply makes more sense ...”

But just think ahead 30 years of renting versus owning.

In 30 years your rent will be more than double with no equity.

In 30 years of ownership you will have no mortgage and lots of equity.

[chickenlips]

This won’t last long.

Some buyers are waiting for interest rates to drop more.

Some considering Florida may have been spooked by recent hurricanes, but some will realize that there are far worse disasters than hurricanes. New Yorkers and Virginians have not had time to realize how screwed they are. Many will be showing up to purchase these Texas and Florida bargains when they wake up to disaster that has befallen them.

[Jonty30]

The market is correcting itself.

[Nervous Tick]

OMG! We have a (politically amplified) “affordability crisis”.
This is leading to a decrease in home sales.
This is not a willful decrease in demand, but it IS a de facto decrease in demand.
Therefore motivated sellers MUST lower their price if they want to sell their overpriced turkey.
When the price point is lowered enough, de facto demand will increase, and sales will increase.

See how Adam Smith’s invisible hand works? If we LET IT.

[Nervous Tick]

>> The market is correcting itself.

LOL! You said what I said in #13, but with less blather.

Good for you!

[factmart]

We still are having housing problems because Biden let 20 million illegals and we the taxpayers are paying for their renters who rent from big corporations.

[rellic]

Being a debt free home owner with acreage in Hawaii, I find the mainland housing problems humorous.
People who rent aren’t stable. Home ownership is a
commitment to community and your personal stability.
I’d rather live in in a mobile home on land that I own than deal with Landlords.
I have been a landlord and lived in a mobile home on land I owned.
I’d rather own a home in a slum(which I have done) than rent an apartment in some planned community.

[VanShuyten]

“ Some buyers are waiting for interest rates to drop more.”

Yes. Mortgage rates are 2.5-3% higher than T-bill rates, so I expect banks to lower their rates sooner rather than later.

[alexander_busek]

There is no crisis. This is how the free market works.

Exactly!

"Home sales tank! Oh, no!"

"Real estate prices plummet [i.e., become more affordable]! Oh, no!"

And you gotta love their use of the euphemism "previously owned" in place of "used":

Sales of previously owned homes in January dropped a much wider-than-expected 8.4% from December [...]

Hint: It's not called a "Previously Owned Car Lot," it's called a "Used Car Lot."

Regards,

[alexander_busek]

But he [chief economist for the National Association of Realtors, Lawrence Yun] also noted on a call with reporters that [...] "renters are not participating in housing wealth."

Sharp as a cueball, this one is!

Regards,

[Adder]

January weather was awful for over half the country.
That might have put a damper on house hunting...