Existing-home sales in the South surged to a seasonally adjusted annual rate of 1.93 million in December, up 3.2% from November and the highest level since March. Compared to December 2023, sales rose 9.0%, reflecting growing momentum.
- The national index for total home sales climbed to 4.24 million, a 2.2% increase from November and above economists’ forecast of 4.19 million.
- The Northeast and West saw monthly gains of 3.9% and 2.6%, respectively, while the Midwest was the only region to decline, slipping 1.0%.
Median home prices showed significant regional variation. The South had the smallest year-over-year price increase at +3.4% with a median price of $361,800 to close out 2024.
- The Northeast posted the largest gain at +11.8%, followed by the Midwest (+9.0%) and the West (+6.0%).
National Housing inventory ended December at 1.15 million units, down 13.5% from November but up 16.2% year-over-year, marking its lowest level since March.
Bad News: Despite December’s gains, annualized existing-home sales fell to 4.06 million, the lowest level since 1995, highlighting the ongoing impact of high mortgage rates and home prices.
What They’re Saying: Lawrence Yun, chief economist for the National Association of Realtors, remained optimistic. “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.”
Bottom Line: While higher mortgage rates and home prices continue to challenge affordability, the housing market is showing signs of improvement. Rising wages and slowing price growth could help more buyers enter the market in 2025.
