February 21, 2025
Housing affordability remains a major challenge.
Chief economist at the National Association of Realtors (NAR), Lawrence Yun, in a press release after NAR released existing-home data for the month of January. Existing-home sales fell in the new year as buyers face 7% mortgage rates and high home prices.
Why It Matters: The housing market positions itself as an important indicator of the U.S. economy’s strength. U.S. existing-home (aka previously owned) sales account for the largest portion of the nation’s housing market at more than 90%. The latest existing-home sales report indicated a nearly 5% decrease compared to December, falling below economists’ expectations.
- The average price of a home was $396,900, the highest it has ever been for the month of January, according to NAR data.
- About 8% of homes sold for more than $1 million, while nearly 25% of homes sold for $250,000 or less. All-cash buyers made up nearly 30% of January sales.
- Houses spent an average of 41 days on the market, the longest average since January 2020. For comparison, houses spent an average of 35 days on the market in December.
Read More: Existing-home sales sag under weight of 7% mortgage rates in first month of 2025 (MarketWatch)
by Emily Hooker, based in Texas
