lucadelladora – The National Association of Realtors (NAR) reported a remarkable 9.3% year-over-year increase in December existing home sales. Reaching 4.24 million units compared to 3.88 million in December 2023. Month-over-month, sales rose 2.2%, the highest monthly increase since February 2024. The growth was seen across all U.S. regions year-over-year, with the Midwest being the sole region to experience a slight month-over-month decline.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” stated NAR Chief Economist Lawrence Yun. He noted that winter sales often lag behind spring and summer. Rising momentum has led to three consecutive months of year-over-year growth.
Median Home Prices Hit Record High
The median home price reached a historic $407,500 in 2024. Reflecting robust demand despite overall existing home sales for the year dropping to their lowest since 1995. Factors like job and wage gains, improved inventory, and long-term benefits of homeownership have bolstered consumer confidence, Yun added.
The report underscores a strengthening housing market despite economic challenges, with solid job growth and competitive pricing driving the recovery. As momentum builds, experts anticipate a positive outlook for 2025.
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Single-Family Home Sales Lead Market Growth
In December, single-family homes dominated sales, with 3.83 million units sold—a 10.1% increase from December 2023 and a 1.9% rise from November. The median price for single-family homes reached $409,300, marking a 6.1% increase year-over-year.
Condominium and co-op sales also saw positive momentum, with 410,000 units sold in December, reflecting a 2.5% increase from December 2023 and a 5.1% jump from November. The median price for condos rose to $359,000, up 4.5% from $343,500 in December 2023.
Median Prices and Inventory Trends
The median price for all existing home types hit $404,400 in December, up 6.0% from $381,400 in December 2023. Notably, all four U.S. regions recorded price increases, underscoring strong demand across the board.
NAR Chief Economist Lawrence Yun highlighted that the upper-end market performed particularly well. “Sales of homes priced above $1 million surged by 35% from a year ago, while sales for homes under $250,000 declined,” he noted.
Total housing inventory in December reached 1.15 million units, up 16.2% from December 2023 but down 13.5% from November. Unsold inventory represented a 3.3-month supply at the current sales pace, an improvement from 3.1 months in December 2023 but slightly lower than November’s 3.8 months.
With strong growth across property types and rising inventory, the housing market is poised for a dynamic start to 2025.
