December existing home sales rise at strongest pace since February

The increase was the largest year-over-year increase since June 2021

December existing home sales rise at strongest pace since February

The increase was the largest year-over-year increase since June 2021

Existing home sales rose 2.2% in December to a seasonally adjusted annual rate of 4.24 million, according to the National Association of Realtors (NAR). December sales grew 9.3% from a year ago, the largest year-over-year gain since June 2021 when sales spiked 23%.

The NAR also reports that last month’s sales were at the highest annual pace since February of last year when home sales reached an annual rate of 4.38 million.  

Sales for the month rose in three of the NAR’s four U.S. regions, falling only in the Midwest. Year-over-year, sales grew in all four regions. For all of 2024, existing home sales were a dismal 4.06 million, the lowest level since 1995. At the same time, median home prices reached $407,500 for the year, a record high.

Housing inventory at the end of December stood at 1.15 million units, down 13.5% from November, but up 16.2% from the 990,000 units on the market one year ago. Unsold inventory was at a 3.3-month supply at the current sales pace, down from the 3.8 months supply in November, but up from the 3.1% supply on the market in December 2023.

NAR Chief Economist Lawrence Yun said the median home price was elevated partly due to the upper-end market’s stronger performance. Sales for homes priced above $1 million rose by 35% year over year, while sales fell for homes priced under $250,000.

“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates, Yun said. “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.”

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