Interest rates and house prices both fell, making it difficult to boost demand. Second-hand home sales in the United States continued to decline in January.

The momentum of the US housing market recovery remains insufficient. The latest data shows that despite a slight drop in mortgage rates and a slowdown in price growth, existing home sales in the US continued to decline in January this year, reflecting the continued reluctance of potential buyers to enter the market. According to data released on Thursday by the National Association of Realtors (NAR), the index measuring existing home contract volume fell by 0.8% in January compared to the previous month, following a significant 7.4% decline in December after revision. This result is significantly below market expectations. Economists surveyed by the media had previously predicted a 2% month-on-month increase in existing home contract volume in January. NAR Chief Economist Lawrence Yun stated in a release that although affordability conditions for homebuyers have improved, this has not yet translated into more actual home purchases. He pointed out, "The improving affordability has yet to more active buyer participation." Analysts believe that the weakening data in January is not a good sign for the US real estate industry in need of a boost in the upcoming "spring season". Historically, every spring sees a concentration of listings on the market, and families typically prepare for summer moves during this period. Market analysts surveyed by the media at the end of last year had predicted that the growth rate of existing home sales in the US in 2026 could range from 1.7% to 14%, but the current data has not yet shown a clear signal of recovery. The data shows that the existing home contract index in December last year was only slightly higher than the level at the beginning of 2025, and the actual transaction volume in January this year declined by over 8% year-on-year. This performance, against the backdrop of mortgage rates being at their lowest level in over a year and little apparent upward movement in existing home prices, further highlights the weakness in demand. As the issue of housing affordability continues to intensify, US President Trump has also attempted to respond to public sentiment through a series of housing policies and seek support for the midterm elections this autumn. This includes proposals to restrict large institutional investors from continuing to purchase single-family rental homes, and directing Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities to lower financing costs. However, Yun also cautioned that if lower mortgage rates re-attract buyers to the market and housing supply remains tight, house prices could rapidly rise again, creating new pressures on affordability. "This is why increasing housing supply and accelerating new home construction are crucial," he said. Regionally, in the largest existing home market in the US, the Southern region saw a 4.5% month-on-month decline in signed sales in January, dropping to the lowest level in a year; the Northeast also saw a decline, while the Midwest and Western regions recorded slight growth. It is worth noting that existing home contract sales are typically seen as a leading indicator of transaction volume, as homes are often signed before the final transaction is completed one to two months later. Therefore, the continued weakness in January data may indicate that existing home sales in the US will continue to face pressure in the coming months.