### U.S. Home Sales Plummet to Record Low Amid Economic Pressures Pending home sales in the United States have reached an unprecedented low in January 2025, primarily driven by a combination of high mortgage rates, soaring home prices, and adverse weather conditions. The National Association of Realtors reported a **4.6% decline** in pending home sales, marking the lowest level recorded since tracking began. This downturn reflects a broader trend of affordability challenges that have significantly impacted potential homebuyers across the nation. *The combination of these factors has created a challenging environment for homebuyers, leading to a notable decrease in market activity* [https://www.dallasnews.com/business/real-estate/2025/02/28/pending-us-home-sales-slide-to-all-time-low-in-january]. ### Factors Contributing to the Decline in Home Sales 1. **High Mortgage Rates**: - Mortgage rates have remained elevated, nearing **7%**, which has deterred many potential buyers from entering the market [https://www.advisorperspectives.com/articles/2025/02/21/us-home-sales-drop-back-mortgage-rates-at-7]. 2. **Record-High Home Prices**: - The median price of homes sold in January was reported at **$396,900**, a **4.8% increase** from the previous year, further straining affordability for buyers [https://www.cnbc.com/2025/02/21/january-home-sales-drop-sharply-as-prices-hit-high.html]. 3. **Adverse Weather Conditions**: - Severe winter weather in January has also been cited as a factor that may have hindered homebuying activity, contributing to the overall decline in sales [https://www.usnews.com/news/economy/articles/2025-02-27/home-sales-fell-4-6-in-january-as-cold-weather-and-affordability-dampened-demand]. ### Supporting Evidence and Data - **Pending Home Sales Decline**: - A **4.6% drop** in pending home sales was reported by the National Association of Realtors, indicating a significant slowdown in market activity [https://www.consumeraffairs.com/news/pending-home-sales-hit-a-record-low-in-january-022825.html]. - **Home Price Trends**: - The median home price of **$396,900** in January represents the highest price recorded for that month, reflecting ongoing inflation in the housing market [https://www.cnbc.com/2025/02/21/january-home-sales-drop-sharply-as-prices-hit-high.html]. - **Impact of Weather**: - January was noted as the coldest month since 1988, which likely exacerbated the decline in home sales as potential buyers faced harsh conditions [https://www.tuko.co.ke/business-economy/580272-us-home-sales-expectations-january-cold-weather]. ### Summary of Findings In summary, the U.S. housing market is currently experiencing a significant downturn, characterized by record-low pending home sales. The following points encapsulate the situation: 1. **Record Low Sales**: Pending home sales have hit an all-time low, down **4.6%** in January [https://www.consumeraffairs.com/news/pending-home-sales-hit-a-record-low-in-january-022825.html]. 2. **Affordability Crisis**: High mortgage rates and home prices are creating barriers for potential buyers, with rates nearing **7%** and median prices at **$396,900** [https://www.advisorperspectives.com/articles/2025/02/21/us-home-sales-drop-back-mortgage-rates-at-7]. 3. **Weather Impact**: Severe winter weather has compounded the challenges faced by buyers, further dampening demand [https://www.usnews.com/news/economy/articles/2025-02-27/home-sales-fell-4-6-in-january-as-cold-weather-and-affordability-dampened-demand]. The combination of these factors suggests a challenging landscape for the housing market as it heads into the spring selling season, with potential buyers remaining cautious amid economic uncertainties.