Sales of existing homes declined to the lowest level annually since 1995 while the median price reached a record high of $407,500 last year.
On a monthly basis, sales of existing homes climbed 2.2% in December to a seasonally adjusted annual rate of 4.24 million, the quickest pace since last February, according to most recent figures from the National Association of Realtors.
Total existing-home sales — which includes single-family homes, townhomes, condominiums and co-ops — gained 2.2% from November to a seasonally adjusted annual rate of 4.24 million in December.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” NAR Chief Economist Lawrence Yun said. “Job and wage gains, along with increased inventory, are positively impacting the market.”
Housing inventory at the end of December was 1.15 million units, down 13.5% from November but up 16.2% from one year ago (990,000). Unsold inventory stood at a 3.3-month supply at the existing sales pace, down from 3.8 months in November but up from 3.1 months in December 2023.
The median existing-home price for all housing types in December was $404,400, up 6.0% from one year ago ($381,400).
“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun said. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”
Real median household income was $80,610 in 2023, a 4% increase from the 2022 estimate of $77,540, according to the U.S. Census Bureau. It was the first statistically significant annual increase in real median household income since 2019.
The 30-year fixed-rate mortgage averaged 6.96% as of Jan. 23, that’s down from 7.04% one week ago but up from 6.69% one year ago, according to Freddie Mac.
