Sales of previously owned U.S. homes dropped in January due to high prices and winter weather. Existing home sales fell 8.4% to 3.91 million units, the biggest decline in nearly four years. Sales were 4.4% lower than last January’s figures, missing economist expectations.

Despite the sales slump, home prices continued to rise. The national median sales price increased 0.9% to $396,800 in January. The U.S. housing market has been struggling since 2022, with sales hovering around a 4-million annual pace, well below the historical norm of 5.2 million.

Mortgage rates have been trending lower, giving home sales a boost in December. Affordability remains a challenge, with first-time buyers making up 31% of sales compared to the historical 40%. Uncertainty in the job market is also a factor keeping buyers on the sidelines.

More homes are staying on the market longer, with 1.22 million unsold homes in January. This translates to a 3.7-month supply at the current sales pace, below the balanced market range of 5-6 months. The spring season may bring more inventory and opportunities for buyers.

Read more at Yahoo Finance: US homes sales fell sharply in January, even as mortgage rates continued to ease