Existing-home sales continue to climb despite continued high mortgage rates

Existing-home sales climbed nationwide 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 are still climbing 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 sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — were up 2.2 percent from November to a seasonally adjusted annual rate of 4.24 million in December. Year-over-year, sales swelled 9.3 percent (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 inventory registered at the end of December was 1.15 million units, down 13.5 percent from November but up 16.2 percent 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 price for all housing types in December was $404,400, up 6 percent 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 said. “Sales rose by 35 percent from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”

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 percent of sales in December, up from 30 percent in November 2024 and 29 percent in December 2023. NAR’s 2024 Profile of Home Buyers and Sellers — released in November — found that the annual share of first-time buyers was 24 percent, the lowest ever recorded.

Cash sales accounted for 28 percent of transactions in December, up from 25 percent in November but down from 29 percent in December 2023.

Individual investors or second-home buyers, who make up many cash sales, purchased 16 percent of homes in December, up from 13 percent in November and identical to December 2023.

Distressed sales — foreclosures and short sales — represented 2 percent of sales in December, unchanged from November and the previous year.

Single-family home sales moved higher by 1.9 percent to a seasonally adjusted annual rate of 3.83 million in December, up 10.1 percent from the prior year. The median existing single-family home price was $409,300 in December, up 6.1 percent from December 2023.

Existing condominium and co-op sales increased 5.1 percent in December to a seasonally adjusted annual rate of 410,000 units, up 2.5 percent from one year ago (400,000). The median existing condo price was $359,000 in December, up 4.5 percent from the previous year ($343,500).

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