Housing News

Existing Home Sales Fell in 2024, But More Buyers Are Returning to the Market

Last year, buyers purchased few existing homes because of rising prices, higher-than-hoped for mortgage rates, and a lack of homes for sale. However, the housing market is beginning to perk back up.  

Existing home sales jumped 9.3% year-over-year in December, according to a National Association of Realtors (NAR) report. That was the biggest annual gain since June 2021. (Existing homes do not include new construction.)

Sales also increased 2.2% from November to December, a month when the housing market generally slows down for the holidays.

“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” NAR Chief Economist Lawrence Yun said in a statement. “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 months.”

The burst of new sales in December came as more homes went onto the market. The number of properties with ‘For Sale’ signs increased 16.2% year-over-year in December, according to NAR. However, housing inventory fell 13.5% from November.

“The strength of the December uptick will be tested in the months ahead, but does open the possibility that the bottom in existing home sales is truly in the rearview mirror,” Realtor.com Chief Economist Danielle Hale wrote in a commentary.

However, December sales weren’t enough to push the 2024 housing market out of its doldrums. Last year, buyers snapped up the lowest number of existing homes, 4.06 million, since 1995, according to NAR.

In addition, the median home price hit an all-time high of $407,500 in 2024.

“[That] 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 buyers purchased nearly a third, 31%, of all existing homes in December. Cash buyers were responsible for 28% of sales.

Where did home sales—and prices—rise the most?

The West experienced the largest bump in annual home sales, rising 12.9% year-over-year in December, according to NAR. Prices ticked up 6% annually to $614,500.

In the Northeast, sales were up 10.4% year-over-year in December. Prices also surged, rising 11.8% annually to a median $478,900 in December.

Buyers in the South purchased 9% more homes in December than the previous one. Prices ticked up 3.4% to $361,800.

Sales rose 6.5% year-over-year in the Midwest. Prices were up 9% annually to a median $298,600.

“Despite uncertainty in the economy, people are feeling generally hopeful about the 2025 housing market,” Bright MLS Chief Economist Lisa Sturtevant said in a statement. The multiple listing service covers the mid-Atlantic region. “While some may have been hoping that 2025 would be a return to a ‘normal’ or pre-pandemic housing market, this is still going to be an unpredictable year.”