Pending US home sales slide to all-time low in January on rates, prices, maybe weather

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Pending home sales in the United States slid to an all-time low in January as high mortgage rates, record-high home prices, and possibly the terrible weather last month hindered those seeking to buy.

The National Association of Realtors said Thursday that its Pending Home Sales Index, which is an indicator of home sales based on contract signings, declined 4.6% to 70.6 last month. Pending transactions fell 5.2% from the year-ago period.

There were month-over-month declines in the Midwest, South and West, with the most significant drop in the South. Despite stretches of high winds and low temperatures, sales in the Northeast rose modestly.

“It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months,” NAR Chief Economist Lawrence Yun said in a statement. “However, it’s evident that elevated home prices and higher mortgage rates strained affordability.”

Mortgage rates in January were between 6.91% and 7.04%.

On Friday NAR said that sales of previously occupied U.S. homes slipped 4.9% last month from December to a seasonally adjusted annual rate of 4.08 million units.

Sales rose 2% compared with January last year, marking the fourth straight annual increase. The latest home sales, however, fell short of the 4.11 million pace economists were expecting, according to FactSet.

Home prices increased on an annual basis for the 19th consecutive month. The national median sales price rose 4.8% in January from a year earlier to $396,900.

The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years.

Shares of publicly traded home builders have been punished this year and those prices slipped again Thursday. Tariffs threatened by President Donald Trump have led to rising unease in the sector due to the possibility of higher prices for lumber and metals. And mass deportations under the Trump administration could also raise costs for builders.

The builder Toll Brothers is down 11% this year. D.R. Horton and Lennar are down between 7% and 9%. Beazer homes is down nearly 17% in 2025.

Originally Published:

ORANGE COUNTY HOME FLIPPING SLIPS 3% IN 2018

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Home flipping — defined as a purchasing then selling a property within 12-months — dropped 3 percent in Orange County in 2018 and stayed about the same in Seminole County. In both counties, investors saw smaller ROIs compared to 2017. Read more

Preview Tiles in your Home using Augmented Reality with Updated View in My Room 3D Tool

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Visualizing how one sample tile will look throughout an entire room can be a challenge, but Houzz is here to help with the latest update to our View in My Room 3D tool! Today, we introduced a new augmented reality (AR) feature that enables shoppers to virtually cover their floor with tile, true-to-scale. Shoppers can see what their homes would look like with new flooring, find out how much tile is needed to cover the space, and order an appropriate amount of material all within the Houzz app.

To use the feature, simply tap the View in My Room 3D button on a product page for any 3D-enabled tile product, launching the iPhone, iPad or Android camera. Read more

Prices Still Rule the National Housing Market; Inventory Catches a Break

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Six straight months of declining home sales have resulted in one of the largest year–over–year inventory increases in at least 10 years, according to the most recent RE/MAX National Housing Report.
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If you and your partner are house hunting — don’t let the stress of shopping for a new home dampen your romance. With two different opinions driving the purchase process, it can create disagreements. RE/MAX offers advice and tips for finding your perfect home — together.

TALK ABOUT YOUR FUTURE TOGETHER
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TAX TIME! QUALIFIED BUSINESS INCOME DEDUCTION EXAMPLES

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Confused about how real estate professionals are impacted by the Qualified Business Income Deduction of Section 199A? Here’s a few examples.
Example 1: Amy Agent is a single Realtor® who operates as a sole proprietor and independent contractor. She received $100,000 in net commission income in 2018. She has no capital gains or losses. After claiming deductions not related to her business, including the standard deduction, Amy’s total taxable income for 2018 is $81,000. Her qualified business income (QBI) is $100,000, which is her gross commissions less her business deductions. Amy’s section 199A deduction for 2018 is equal to $16,200, which is the lesser of 20% of her QBI from her business as a real estate agent ($100,000 x 20% = $20,000) and 20% of Amy’s total taxable income for the year ($81,000 x 20% = $16,200). Read more

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Read on for eight simple home security hacks from a recent home safety evaluation conducted by a police officer
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IRS PROVIDES CLEAR TEST ON RENTAL INCOME, EXCHANGE DEDUCTION

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The Internal Revenue Service has issued final rules on the 20 percent business income deduction (Sec. 199A of the Tax Code) that was enacted in late 2017 as part of the Tax Cuts and Jobs Act.

Among other things, the rules confirm that the deduction applies to your business income, as a real estate agent or broker, if you operate as a sole proprietor or owner of a partnership, S corporation, or limited liability company. It applies even if your income exceeds a threshold set in the law of $157,500 for single filers and $315,000 for joint filers.

In addition, the rules provide guidance that NAR has been seeking on two other provisions of importance to you: 1) whether any real estate rental income you have is eligible for the deduction, and 2) how the deduction applies to properties you’ve exchanged under Sec. 1031 of the tax code.

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