The number of actively listed homes increased 10% compared to January 2025, marking the 27th consecutive month of year-on-year inventory gains, according to the January 2026 Monthly Housing Market Trends Report from Realtor.com.
On a monthly basis, active inventory fell 6.8% since December, a typical seasonal pattern, Realtor.com said. Although listings are up again year on year, the pace of that growth has slowed in each of the past eight months, down from 32% peak YoY growth in May. As a result, Realtor.com stated that the national inventory recovery has stalled and is now moving in the wrong direction, following solid progress in most of 2025.
Specifically, Realtor.com said that nationwide January inventory is 17.2% below typical 2017–19 levels, the furthest from pre-pandemic norms since March 2025, and 20.2% below 2017–19 levels.
Inventory rose modestly in all four major U.S. regions in January compared to the prior year, Realtor.com noted. Unlike much of 2025, active listing growth was uniform to kick off 2026, but like 2025, the Northeast continues to lag other regions.
Metro Level Listings Down Slightly
At the metro level, 46 of the 50 largest markets recorded year-over-year inventory growth, with active listings very slightly down in Jacksonville, San Francisco, Chicago, and Grand Rapids. The sharpest increases were seen in Seattle (+32.4%), Charlotte (+28.6%), and Washington, D.C. (+26.8%).
Compared to May 2025, only the Midwest region has seen its inventory rise relative to pre-pandemic norms, but only improving from -42.1% to -37.8%. For the South, West, and Northeast—and the national aggregate—the inventory recovery is moving in the wrong direction: closer to tight pandemic-era markets, Realtor.com said.
Should that trend continue, Realtor.com said, it will put upward pressure on house prices moving forward, as buyers could lose some of the leverage they had gained last year, Realtor.com noted.
At the metro level, between May 2025 and January 2026, just 20 of the top 50 metros are adding inventory relative to pre-pandemic norms. Of the 28 metros below normal inventory levels in May, just three (Kansas City, Minneapolis, and Louisville) have moved meaningfully toward their typical pre-pandemic levels.
Of the 22 markets above pre-pandemic levels in May, all but four regressed toward their pre-pandemic levels.
That is indicative of an inventory renormalization in the South and West; on the other hand, this suggests active listings acceleration may have peaked in these markets and prices could firm up in the future, Realtor.com noted.
Nationwide Inventory Reverses Course
The nationwide inventory recovery has reversed course, Realtor.com said. Since last Spring, modest progress in the Midwest has been offset by slowdowns in the South, West, and Northeast.
Newly listed homes increased by 0.7% year over year and by 41% since last month—an eye-popping monthly gain but one in line with typical seasonality, as new listings drop off precipitously at the end of the year, the website said. At the regional level, new listings were up modestly in the Midwest (+1.1%), West (+1.1%), and South (+0.3%); new listings fell 1.9% year over year in the Northeast.
Buyer activity also increased in January.
Pending home sales—listings under contract—grew by 1.2% year over year. That is the largest year-over-year increase in pending home sales since December 2024 (+2.3% YoY). That number is probably partly due to mortgage rates in mid-January falling to their lowest level since 2022. With rates in the 2026 homebuying season expected to be well lower than last year, Realtor.com said that pending sales and new listing growth will be something to watch in the coming months.
In January, the typical home spent 78 days on the market, which is five days longer than the same time last year and marks the 22nd straight month of homes taking longer to sell on a year-over-year basis. Despite a five-day month-over-month increase in January (up from 73 days in December 2025), homes are now selling five days faster than their pre-pandemic norms after pacing in line with pre-pandemic levels in July through September.
Median Price Unchanged
In January, the national median list price was $399,900, unchanged from last year or last month. The price per square foot fell more substantially (down 1.6% YoY, flat MoM). Under the surface, though, price trends continue to vary by region, Realtor.com noted.
At the metro level, the median list price per square foot is falling in 30 of the top 50 metros. The largest price declines were in Austin (-6.1%), Washington, DC (-6.1%), and Memphis (-5.8%). The largest gains were in Providence (+9.8%), Grand Rapids (+9.2%), and Indianapolis (+6.8%). Generally speaking, though, price changes were modest in most places; nearly half (22) of the top 50 metros posted price per square foot changes within ±2%.
Back to the national scene, price cuts were slightly down year over year, with 14.3% of listings now offered at a discount compared to 15.6% in January 2025. Last year was defined by a high share of listings with price cuts (around 20% from June through October) and sticky-high list prices at the median, Realtor.com said. This year may bring the opposite, as more sellers price down at list rather than cutting after seeing their home sit for longer than anticipated.
By region, price cuts remain least common in the inventory-squeezed Northeast (8.2% of listings) compared to the Midwest (11.5%), South (15.8%), and West (16.0%).
Metros with the most listings with price cuts, often linked to slower demand, included Tampa (24.1% of listings), Phoenix (25.2%), and Portland (23.4%). Price cuts were up year on year in just 17 of the top 50 metros.
The post Housing Inventory Up Since Last Year, But Losing Ground on Pre-Pandemic Recovery first appeared on The MortgagePoint.
