Home sales fall to nearly 30-year low 

High mortgage rates and high home prices have driven sales to its lowest level in nearly three decades.
Home For Sale Real Estate Sign in Front of New House.

Sales of previously occupied U.S. homes fell to a nearly 30-year low in 2024 due to factors such as elevated mortgage rates, rising home prices and a limited number of properties on the market.

The big picture: Existing U.S. home sales in 2024 totaled 4.06 million, a 0.7% decline from the previous year, marking the weakest year for home sales since 1995.

  • The median national home price rose by 4.7% in 2024 to reach an all-time high of $407,500.
  • The U.S. housing market has been experiencing a sales slump since 2022, with mortgage rates increasing and home prices soaring.

Go deeper: A shortage of inventory in the housing market has contributed to high prices, limiting the buying power of potential homebuyers.

  • In December 2024, there were only 1.15 million homes on the market, well below the historical average, leading to a 3.3-month supply of homes based on the current sales pace.
  • Home sales in December saw a 2.2% increase from the previous month and a 9.3% increase compared to the same month a year earlier.
  • The median home sales price continued to rise, reaching $404,000 in December 2024, up 6% from the previous year.
  • Limited inventory, especially in the affordable price range, contributed to higher prices, making it challenging for first-time homebuyers to afford a home.
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