Existing-Home Sales in January 2025
Existing-home sales fell sharply in January, with affordability challenges keeping many buyers on the sidelines. Despite monthly decline, sales were higher year-over-year. Housing affordability remains a major obstacle, with high-end sales increasing while entry-level sales decline. Inventory is increasing but not translating into stronger demand. Foreclosure starts jumped 30 percent in January. Federal Reserve unlikely to cut interest rates before June.
Key Points
- Affordability challenges persist
- High-end sales increasing while entry-level sales decline
- Inventory is increasing but not leading to stronger demand
- Foreclosure starts on the rise
Pros
- Year-over-year increase in sales
- Inventory is increasing
Cons
- Affordability challenges
- Foreclosure starts jumped 30 percent