Existing-home sales increased 2.2% in December compared with November to a seasonally adjusted annual rate of 4.24 million, the strongest pace since February 2024, according to the National Association of Realtors (NAR).
Year-over-year, existing-home sales were up 9.3% – the largest annual gain since June 2021.
Despite the improvement, existing-home sales remain at the lowest level in about 30 years.
The median existing-home sales price in December was $404,400, up 6% compared with December 2023.
December marked the 18th consecutive month of year-over-year price increases and biggest year-over-year growth since October 2022.
The inventory of unsold existing homes dropped 13.5% from the previous month to 1.15 million – or the equivalent of 3.3 months’ supply at the current monthly sales pace. Still, supply is up 16.2% from one year ago.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” says Lawrence Yun, chief economist for NAR, in a statement. “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.”
“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun adds. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”
Photo: Scott Webb
