WASHINGTON, D.C. – Existing-home sales climbed 2.2% in Dec. to a seasonally adjusted annual rate of 4.24 million, the National Association of Realtors® (NAR) reported. This marks the strongest pace since Feb. 2024 and a 9.3% increase compared to Dec. 2023, the largest year-over-year gain since June 2021.
Despite the uptick in the fourth quarter, total annual existing-home sales fell to 4.06 million in 2024, the lowest level since 1995. Meanwhile, the median home price reached a record high of $407,500, reflecting an ongoing upward trend in home values.
Inventory and Pricing Trends
The inventory of unsold existing homes dropped 13.5% from November to 1.15 million units by the end of December, equating to a 3.3-month supply at the current sales pace. However, inventory levels were up 16.2% compared to December 2023.
The median existing-home price for all housing types rose 6.0% year-over-year to $404,400, marking the 18th consecutive month of price increases. All four U.S. regions posted gains, with the West leading at a median price of $614,500, a 6.0% increase.
Regional Breakdown
South: Sales increased 3.2% month-over-month to 1.93 million, a 9.0% annual gain. The median price rose 3.4% to $361,800.
Northeast: Sales grew 3.9% month-over-month to an annual rate of 530,000, up 10.4% year-over-year. The median price increased 11.8% to $478,900.
Midwest: Sales slipped 1.0% to 990,000 but rose 6.5% year-over-year. The median price climbed 9.0% to $298,600.
West: Sales advanced 2.6% to 790,000, up 12.9% year-over-year. The median price reached $614,500, up 6.0%.
Market Dynamics
Single-family home sales rose 1.9% in December to an annual rate of 3.83 million, a 10.1% year-over-year increase. The median price for single-family homes was $409,300, up 6.1%. Condominium and co-op sales increased 5.1% to 410,000 units, up 2.5% year-over-year, with a median price of $359,000, a 4.5% gain.
First-time buyers accounted for 31% of transactions in December, up from 30% in November. Cash sales made up 28% of all transactions, while distressed sales remained low at 2%.
Mortgage Rates
According to Freddie Mac, the average 30-year fixed mortgage rate was 6.96% as of January 23, down from 7.04% the prior week but up from 6.69% one year ago.
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