US Housing Market Shows Signs of Crisis as Home Sales Plunge 8.4%
Existing home sales in the US plummeted 8.4% in January, marking the steepest monthly decline since February 2022. The drop—4.4% lower than January 2025 levels—has prompted National Association of Realtors chief economist Lawrence Yun to warn of a "new housing crisis." Southern and Western regions bore the brunt of the downturn.
Median home prices edged up 0.9% year-over-year to $396,800, but properties now take 46 days to sell versus 41 days previously. "Potential buyers are still struggling," Yun noted, adding that renters aren't transitioning to ownership despite income growth—a key dynamic missing from current market conditions.
The sales slump coincides with weakening consumer confidence and broader economic uncertainty, including tech sector layoffs linked to AI industry adjustments. Notably, the luxury housing segment remains insulated from these pressures.
