HousingWireHousingWire
Existing home sales finished 2024 on a high note after a dismal year for the housing market. The December report from the National Association of Realtors (NAR) shows existing-home sales at a seasonally adjusted annual rate of 4.24 million, a 9.3% annual increase. It’s the highest year-over-year gain since June 2021 but is still historically low.
The median sales price grew to $404,400 in the 18th consecutive month of annual price increases, and the 6% year-over-year rise is the largest since October 2022.
Despite the positive news in the December numbers, the final tallies for 2024 paint a different picture. Sales in 2024 finished at just 4.06 million, the lowest level in almost 30 years. The final 2024 median sales price hit a record high of $407,500.
Taken together, positive December sales and abysmal 2024 numbers make for a bittersweet ending to a challenging year.
“Over the past decade, the U.S. has averaged about 5.2 million home sales annually,” said Bright MLS Chief Economist Lisa Sturtevant in a statement. “It is going to take years before we are back at that level, maybe not even until the 2030s.
“Current homeowners who are locked into low mortgage rates and are staying in their homes longer are keeping the supply of existing homes low. New construction has not been able to keep up with demand.”
The ongoing lack of inventory was reflected in NAR’s report. Available existing homes for sale fell to 1.15 million, down 13.5% compared to November. That’s good for just 3.3 months of supply. However, it’s up 16.2% year over year.
Geographically the results are also positive compared to last year. Sales in the Northeast rose 10.4% annually and also grew in the South (9%) and the West (12.9%). The Midwest rose 6.5%.
The 4.06 million sales in 2024 shouldn’t be too hard to beat in 2025, but market forecasts from economists in the housing sector aren’t terribly bullish. Predictions range between NAR’s 4.9 million sales forecast to Realtor.com’s 4 million.
HousingWire’s comprehensive 2025 market forecast predicts 4.2 million existing-home sales with a 3.5% increase in home prices.
