In December, total existing-home sales—completed transactions that include single-family homes, townhomes, condominiums and co-ops—rose 2.2%, up from November’s rate of 4.15 million to 4.24 million.
Year-over-year, December’s sales increased 9.3%, the largest year-over-year gain since June 2021.
National Association of REALTORS®’ (NAR) Chief Economist Lawrence Yun commented that job and wage gains, along with increased inventory, are positively impacting the market.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” said 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.”
On an annual basis, even with this increase, existing-home sales were at their lowest level in nearly 30 years, while the median price of existing homes reached a record high of $407,500 in 2024.
The median price of existing-home sales went up 6% from December 2023 to $404,400. All four regions posted price increases. This is the 18th consecutive month of year-over-year price growth and the largest increase since October 2022.
“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun added. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”
The total housing inventory available at the end of December was 1.15 million, down 13.5% month-over-month.
Bright MLS Chief Economist Lisa Sturtevant blamed low inventory for the overall depressed level of home sales, adding in a statement that there aren’t immediate signs that the market will return to historic levels.
“Over the past decade, the U.S. has averaged about 5.2 million home sales annually. It is going to take years before we are back at that level, maybe not even until the 2030s,” she said.
The monthly REALTORS® Confidence Index also found that properties typically remained on the market for 35 days—up from 32 the previous month and 29 a year ago.
First-time buyers were responsible for 31% of sales in December, up from 30% in November 2024 and 29% in December 2023. The share of first-time buyers fell to an all-time low of 24% during 2023 – 24, according to NAR data.
In December, 28% of existing homes were purchased with cash, up 3% month-over-month and down 1% year-over-year.
Those purchasing a second home, or individual investors, purchased 16% of homes in December, up 13% month-over-month. That percentage remained the same year-over-year.
Foreclosures and short sales, or distressed sales, made up 2% of sales in December, which remained the same in November and December 2023.
For single-family homes, the median price for existing-homes rose to $409,300 in December, up 6.1% year-over-year. Sales increased by 1.9% to 3.83 million in December, up 10.1% year-over-year. The median price for existing condominiums and co-ops was $359,000 in December, up 4.5% year-over-year. Sales increased by 5.1% to 410,000 units, up 2.5% year-over year.
In the Northeast, 530,000 existing homes were sold in December, up 3.9% month-over-month and 10.4% year-over-year. The median price was $478,900, up 11.8% from last year.
The Midwest had 990,000 existing homes sold in December, down 1% month-over-month and down 6.5% year-over-year. The median price in the Midwest was $298,600, up 9% from December 2023.
In the South, 1.93 million existing homes sold in December, up 3.2% from November and 9% from last year. The median price in the South was $361,800, up 3.4% from one year earlier.
In the West, 790,000 existing homes sold in December, a 2.6% increase month-over-month and 12.9% year-over-year. The median price increased 6% from last year to $614,500.
