Existing home sales pulled back sharply in the month of January, according to a report released by the National Association of Realtors on Friday.
NAR said existing home sales plunged by 4.9 percent to an annual rate of 4.08 million in January after surging by 2.9 percent to an upwardly revised rate of 4.29 million in December.
Economists had expected existing home sales to tumble by 2.8 percent to an annual rate of 4.12 million from the 4.24 million originally reported for the previous month.
The steeper than expected drop came a month after existing home sales jumped to their highest annual rate since reaching 4.31 million last February.
The report said housing inventory at the end of January totaled 1.18 million units, up 3.5 percent from 1.14 million in December and up 16.8 percent from 1.01 million a year ago.
The unsold inventory represents 3.5 months of supply at the current sales pace, up from 3.2 months in December and 3.0 months in January 2024.
NAR also said the median existing home price was $396,900 in January, down 1.7 percent from $403,700 in December but up 4.8 percent from $378,600 in the same month last year.