Year-over-year gain is the largest since June 2021, according to the National Association of Realtors
WASHINGTON — December existing home sales had their highest yearly increase since June 2021, according to a report issued this past Friday by the National Association of Realtors.
The report said that sales of single-family homes, townhomes, condominiums and co-ops rose 9.3% to 4.24 million, compared with 3.88 million in December 2023. They also rose 2.2% from November, which was the highest increase since February 2024. Year-over-year sales rose in all four regions of the U.S. and from November rose in three other regions while declining in the Midwest.
The median price also reached a record high of $407,500 in 2024, while overall existing homes sales declined to their lowest level since 1995, the NAR said.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” said NAR Chief Economist Lawrence Yun. “Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months. Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market.”
Single-family homes represented the vast majority of homes sold at 3.83 million, which was up 10.1% from December 2023 and up 1.9% from November. The median existing single-family home price was $409,300, up 6.1% from December 2023.
There were 410,000 existing condominium and co-op sales in December, up 2.5% from 400,000 in December 2023 and up 5.1% from November. The median existing condo price was $359,000 in December, up 4.5% from $343,500 in December 2023.
The median existing-home price for all existing home types was $404,400 in December, up 6.0% from $381,400 in December 2023. The report went on to note that all four U.S. regions posted price increases.
“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun added. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”
The December report also noted that total housing inventory during the month was 1.15 million units, which was up 16.2% from 990,000 in December 2023 and down 13.5% from November. Unsold inventory, it added, was at a 3.3 month supply at the current sales pace, up from 3.1 months in December 2023, but down from 3.8 months in November.
By region the activity was as follows:
In the Northeast, December existing home sales rose to an annual rate of 530,000, up 10.4% from December 2023 and up 3.9% from November. The median price in the Northeast was $478,900, up 11.8% from December 2023.
In the Midwest, existing-home sales totaled 990,000, up 6.5% from December 2023 and down 1% from November. The median price in the region was $298,600, up 9% from December 2023.
In the South, existing home sales totaled 1.93 million, up 9% from December 2023 and up 3.2% from November. The median price in the South was $361,800, up 3.4% from December 2023.
In the West, existing-home sales totaled 790,000, up 12.9% from December 2023 and up 2.6% from November. The median price in the West was $614,500, up 6.0% from December 2023.
Other highlights of the monthly report were as follows:
+ Properties typically remained on the market for 35 days in December, which was up from 29 days in December 2023 and up from 32 days in November.
+ First-time buyers represented 31% of sales in December, up from 29% in December 2023 and up from 30% in November.
+ Cash sales represented 28% of sales in December, down from 29% in December 2023 but up from 25% in November. Individual investors, including second-home buyers, accounted for 16% of existing home sales in December, level with December 2023, but down from 13% in November.
+ Distressed sales, including foreclosures and short sales, represented 2% of sales in December, unchanged from December 2023 and November.
+ According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.96% as of Jan. 23 compared with 6.69% in December 2023 and down from 7.04% one week prior.