Existing home sales in the U.S. in 2024 were the lowest in nearly 30 years, as home prices hit an all-time high.
The National Association of Realtors released data that showed existing home sales declined to the lowest level since 1995 last year, with 4.06 million homes sold on an annual basis.
Meanwhile, the median home price rose to a record high of $407,500 in 2024.
"With mortgage rates close to 7% and generally soft homebuying sentiment, strength in existing home sales is unlikely to be sustained," said Alice Zheng, an economist at Citigroup. "We do not expect much further upside for housing demand near-term."
Existing home sales fell to the lowest level in nearly 30 years in 2024. (iStock / iStock)
Existing home sales did show signs of rising in the closing months of 2024, rising 2.2% from November to a seasonally adjusted annual rate of 4.24 million in December. Year-over-year, sales were up 9.3% from an annual rate of 3.88 million in December 2023.
"Home sales in the final months of the year showed solid recovery despite elevated mortgage rates," said NAR chief economist Lawrence 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," Yun said. "Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market."
Existing home sales increased on an annual basis in all four regions analyzed by the NAR, while prices also increased in each of the four regions.
Sales were up 9.3% on a year-over-year basis – the largest gain since June 2021, which was mostly driven by transactions for housing valued at over $500,000.
Elevated mortgage rates have chilled the housing market. (Justin Sullivan/Getty Images / Getty Images)
The median home price for existing homes was $404,400 – an increase of 6% from $381,400 a year ago.
"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."
First-time homebuyers accounted for 31% of home sales in December, up from 30% in November and 29% in December 2023.
NAR's "Profile of Home Buyers and Sellers" that was released in November found that the annual share of first-time home buyers was 24%, the lowest ever recorded.
Reuters contributed to this report.