WASHINGTON, Feb 12 (Reuters) - U.S. existing home sales tumbled to the lowest level in more than two years in January as falling inventory raised house prices. Home sales dropped 8.4% last month to a seasonally adjusted annual rate of 3.

Sales of previously owned US homes fell in January by the most in nearly four years, a month marked by historically cold temperatures and a massive winter storm.

Seasonally adjusted existing home sales in the country fell 8.4% in January to 3.91 million, missing the market expectation of 4.16 million. In December 2025, the number of existing home sales had increased by 4.4% to 4.27 million. Existing home sales also declined by 4.4% on an annual basis in January.

US stocks quickly erased early gains to sink sharply into the red as disappointing housing data and ongoing fears about an AI bubble eroded market sentiment.

Realtors warn of ‘new housing crisis’ as home sales fall at start of 2026 - Sales of previously owned homes last month fell by 8.4 percent overall from December, a much heavier drop than expected