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.