U.S. home sales drop in January - KWWL - Eastern Iowa Breaking News, Weather, Closings

U.S. home sales drop in January

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(NBC) -

U.S. sales dropped 4.9 percent in January, down to its lowest level since April 2014.

Strong job growth and historically low mortgage rates didn't spark growth in the housing market, as potential buyers and sellers are holding off while cold weather means fewer people are attending open houses. 

Also, fewer properties came into the market and construction starts were down 2 percent.

In addition, the Mortgage Bankers Association reports that signed contracts were down nearly 4 percent in December. 

Affordability also seemed to be a factor as a the median home price rose 6.2 percent over the last 12 months to just under $200,000, pricing some first-time home buyers out of the market. 

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