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January Housing Report: U.S. Inventory Gains Decelerate Amid Price Stability

In January 2026, the landscape of the U.S. housing market showcased a blend of slow inventory gains and persistent pricing stability. According to the latest Realtor.com® Monthly Housing Report, although housing supply saw a boost, the recovery appears to have lost steam, marking a notable shift from the trends observed in previous months.

Overview of Inventory Trends

The report revealed an annual rise in active listings of 10.0%, maintaining a streak of inventory gains for 27 consecutive months. However, this growth has slowed for nine consecutive months. The inventory levels now sit 17.2% below the norms from 2017 to 2019—a striking gap that highlights the ongoing challenges in returning to pre-pandemic levels. This decline signals potential re-emerging supply constraints, despite a relative abundance of homes compared to a year ago.

Danielle Hale, Chief Economist at Realtor.com®, noted, “After significant inventory gains last year, the recovery has lost momentum. Even with more homes on the market, supply remains far beneath pre-pandemic levels, which continues to uphold national pricing.” Interestingly, areas in the West and South have shown tighter inventory, hinting at renewed price firmness in markets that were previously weaker.

Housing Metrics in January 2026

Here's a snapshot of key metrics:

• - Median Listing Price: $399,900 (no change month-over-month)
• - Active Listings: 912,696 (a 6.6% decrease from December 2025)
• - New Listings: 329,228 (41.0% increase year-over-year)
• - Median Days on Market: 78 days
• - Price reductions: 14.3% of active listings experienced a discount

While the median list price remained stable, there was a slight decline in price per square foot by 1.6%. Interestingly, the share of listings with price cuts dipped from 15.6% in January 2025 to 14.3% this year, showcasing a slight recalibration in seller pricing strategies.

Buyer Activity Trends

Encouragingly, buyer activity showed signs of life in January, with pending home sales rising by 1.2% year-over-year, the largest increase since December 2024. Much of this uptick is attributed to a drop in mortgage rates to levels not seen since 2022, positioning the market to potentially restore some balance. Lower mortgage rates in the forthcoming homebuying season could lead to a significant rise in both pending sales and new listings, marking an essential phase to watch as the year progresses.

Regional Variations in Inventory

Every major region in the U.S. saw inventory growth in January; however, this growth was relatively modest. The West led with a 11.5% increase year-over-year, followed closely by the Midwest at 11.0%, while the South and Northeast noted increases of 9.4% and 6.8%, respectively. Seattle, Charlotte, and Washington, D.C. reported the most significant gains among the largest 50 U.S. metros, yet many regions have strayed further from pre-pandemic supply levels, suggesting that the market's peak inventory period may be behind it.

Jake Krimmel, Senior Economist at Realtor.com®, emphasized that the upcoming months will be pivotal for the ongoing inventory recovery and the housing market's path toward affordability. A robust increase in new listings, coupled with lower mortgage rates, could help balance the market. However, if inventory continues to tighten, lower rates may renew competition, limiting buyers' relief.

Conclusion

The January 2026 housing report paints a complex picture of the U.S. real estate market, blending cautious optimism with signs of hesitance. As the homebuying season approaches, the interplay between inventory levels, pricing strategies, and buyer activity will be crucial in determining the next steps for a market striving for stability amidst ongoing economic pressures.