Tag: ExistingHome

WASHINGTON (January 24, 2025) – Existing-home sales climbed in December, according to the National Association of REALTORS®. Sales advanced in three major U.S. regions and slipped in the Midwest. Year-over-year, sales accelerated in all four regions.

On an annual basis, existing-home sales (4.06 million) declined to the lowest level since 1995, while the median price reached a record high of $407,500 in 2024.

Total existing-home sales¹ – completed transactions that include single-family homes, townhomes, condominiums and co-ops – elevated 2.2% from November to a seasonally adjusted annual rate of 4.24 million in December. Year-over-year, sales swelled 9.3% (up from 3.88 million in December 2023).

“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.”

Total housing inventory² registered at the end of December was 1.15 million units, down 13.5% from November but up 16.2% from one year ago (990,000). Unsold inventory sits at a 3.3-month supply at the current sales pace, down from 3.8 months in November but up from 3.1 months in December 2023.

The median existing-home price³ for all housing types in December was $404,400, up 6.0% from one year ago ($381,400). 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.”

REALTORS® Confidence Index

According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 35 days in December, up from 32 days in November and 29 days in December 2023.

First-time buyers were responsible for 31% of sales in December, up from 30% in November 2024 and 29% in December 2023. NAR’s 2024 Profile of Home Buyers and Sellers – released November 2024⁴ – found that the annual share of first-time buyers was 24%, the lowest ever recorded.

Cash sales accounted for 28% of transactions in December, up from 25% in November but down from 29% in December 2023.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in December, up from 13% in November and identical to December 2023.

Distressed sales⁵ – foreclosures and short sales – represented 2% of sales in December, unchanged from November and the previous year.

Mortgage Rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.96% as of January 23. That’s down from 7.04% one week ago but up from 6.69% one year ago.

Single-family and Condo/Co-op Sales

Single-family home sales moved higher by 1.9% to a seasonally adjusted annual rate of 3.83 million in December, up 10.1% from the prior year. The median existing single-family home price was $409,300 in December, up 6.1% from December 2023.
Existing condominium and co-op sales increased 5.1% in December to a seasonally adjusted annual rate of 410,000 units, up 2.5% from one year ago (400,000). The median existing condo price was $359,000 in December, up 4.5% from the previous year ($343,500).

Regional Breakdown

In December, existing-home sales in the Northeast grew 3.9% from November to an annual rate of 530,000, up 10.4% from December 2023. The median price in the Northeast was $478,900, up 11.8% from last year.

In the Midwest, existing-home sales slid 1.0% in December to an annual rate of 990,000, up 6.5% from the prior year. The median price in the Midwest was $298,600, up 9.0% from December 2023.

Existing-home sales in the South increased 3.2% from November to an annual rate of 1.93 million in December, up 9.0% from one year before. The median price in the South was $361,800, up 3.4% from one year earlier.

In the West, existing-home sales rose 2.6% in December to an annual rate of 790,000, up 12.9% from a year ago. The median price in the West was $614,500, up 6.0% from December 2023.

About the National Association of REALTORS®

As America’s largest trade association, the National Association of REALTORS® is involved in all aspects of residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor.

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For local information, please contact the local association of REALTORS® for data from local multiple listing services (MLS). Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

NOTE: NAR’s Pending Home Sales Index for December will be released January 30, and Existing-Home Sales for January will be released February 21. Release times are 10 a.m. Eastern. See NAR’s statistical news release schedule.
 

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¹ Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

² Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condos were measured only on a quarterly basis).

³ The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

⁴ Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s REALTORS® Confidence Index, which include all types of buyers. The annual study only represents primary residence purchases, and does not include investor and vacation home buyers. Results include both new and existing homes.

⁵ Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s REALTORS® Confidence Index, posted at nar.realtor.