For the last three years, home prices have largely
held their ground while interest rates have
remained elevated compared to the ultra-low
pandemic-era. Some see stagnancy. Others see
stability. Either way, the market hasn’t been dra-
matic. However, January may be signaling that
momentum is building — and that 2026 could
bring meaningful change.
Inventory is certainly having a strong start to
the year. The number of new listings in January
showed a significant increase from December,
coming in at 4,455 — a whopping 152% increase
month over month. The number of active listings
at month’s end totaled 8,228, an 8.16% increase
from December. Notably, this is stronger than the
historical average January change, which typi-
cally shows a 3.28% decline month over month.
For context, the average number of active list-
ings in January (1985–2025) is 11,926. The highest
January on record was 2008 with 24,550 listings,
while the lowest was 2022 with just 1,184 list-
ings. This upswing in inventory may be twofold.
December saw a larger-than-usual number of
homes expire or withdraw from the market, and
many of those sellers appear to have regrouped
and re-entered in January. The unusually warm
winter could also be contributing to what feels
like an early start to the spring real estate season.
Both average and median days in MLS increased,
with average days on market at 74, a 12% month-
over-month increase, and median days in MLS at
53, a 17% month-over-month increase, reinforc-
ing what we’ve been seeing: homes are simply
taking longer to sell. Sellers are starting to adjust
without panic. There’s growing recognition that
today’s market requires more time and intention.
Gone are the “list Thursday, under contract by
Monday” norms. Instead, we’re seeing a return
to thoughtful pricing, stronger preparation, and
realistic expectations. Longer time on market
doesn’t have to signal a lack of demand — it often
means buyers are being more deliberate.
Pending sales saw a significant jump in January,
likely influenced by December’s wave of expired
and withdrawn listings returning to the market,
along with fresh inventory hitting at the start of
the year. Pending sales increased 47.19% from
December, with 3,060 homes moving under con-
tract. Because pending status is reflected almost
immediately once a contract is written, this metric
gives us a more real-time look at buyer activity.
Closed sales, however, tend to lag. Closings were
down 40.55% in January. Unlike pending status, a
property does not move to closed until the trans-
action is fully complete — typically about 30 days
after going under contract. That means Janu-
ary’s dip in closed sales is largely reflective of our
significantly slower holiday season. We should
expect to see the influx of closings from Janu-
ary’s surge in activity show up in February’s data.
Average and median close prices remained rela-
tively steady. The average close price in January
was $676,548, decreasing a modest 0.02% month
over month and 1.39% year over year. The median
close price came in at $569,500, decreasing just
under 1% both month over month and year over
year, reinforcing the broader theme we’ve expe-
rienced since 2023: price stability.
