Home Sales End Tough Year with December Rebound
Earlier today, the National Association of REALTORS released the 2024 Existing-Home Sales Data. In December, U.S. existing-home sales rose 2.2% from the previous month to a seasonally adjusted annual rate of 4.24 million — the highest level since February 2024. However, total sales for the year fell 0.7% compared to 2023, marking the lowest annual total since 1995. The national median existing-home price in December was $404,400, up 6% from December 2023, driven by limited inventory.
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2024 Sales: Finished at 4.06 million, the lowest level in almost 30 years.
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2024 Median Prices: December's median sales price rose to $404,400, a 6% increase, contributing to a record-high annual median of $407,500.
Ralph’s Take
The year ended with the lowest sales in nearly 30 years - wow! While 2025 should easily surpass the low benchmark, economists remain cautious. Forecasts for 2025 range widely, from NAR’s more optimistic 4.5 million projection to Realtor.com’s conservative 4 million. With prices still climbing and inventory tight, sustained recovery will hinge on addressing the limited supply of homes. Current homeowners, locked into low mortgage rates, are staying in their homes longer, further restricting existing inventory, while new construction continues to fall short of meeting demand.
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