In 2024, U.S. existing-home sales dropped to their lowest level since 1995, with 4.06 million units sold.
This marks the second year in a row of declining sales, driven by persistently high mortgage rates, which have stayed between 6% and 8% since late 2022, along with rising home prices. In December, the national median price for existing homes was $404,400, reflecting a 6% increase compared to December 2023. While inventory levels rose compared to the previous year, they remained tight, contributing to higher prices. The future of the housing market largely hinges on mortgage rates.
“Home sales in the final months of the year showed a strong recovery despite high mortgage rates,” said NAR chief economist Lawrence Yun in a statement. “Consumers clearly recognize the long-term advantages of homeownership. Job and wage growth, combined with an increase in inventory, are having a positive effect on the market.”
Leave a Reply