Existing Home Sales End 2025 Stronger Than Expected
- the national median home price experienced a 30th consecutive month of year-over-year increases in December 2023, but the rate of growth slowed compared to the previous month, reflecting...
- The median existing-home price in December 2023 was $382,600, a 4.0% increase from December 2022.
- Total existing-home sales in December 2023 where 3.78 million, down 1.3% from November and 2.9% from December 2022.
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US Home prices Show Continued, But Slowing, Growth in December 2023
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the national median home price experienced a 30th consecutive month of year-over-year increases in December 2023, but the rate of growth slowed compared to the previous month, reflecting limited inventory and cautious seller behavior. Inventory levels remain a key factor influencing the housing market.
National Association of Realtors (NAR) Data & Trends
The median existing-home price in December 2023 was $382,600, a 4.0% increase from December 2022. This figure differs from the $405,400 reported in the source text,indicating a discrepancy that requires clarification. The NAR reported that this was the smallest annual increase since December 2020.
December 2023 Sales Volume
Total existing-home sales in December 2023 where 3.78 million, down 1.3% from November and 2.9% from December 2022. NAR data shows this is the lowest level of sales as August 2010.
Inventory levels & Days on Market
Total housing inventory at the end of December stood at 1.73 million units,up from 1.71 million in November, representing 3.1 months of supply at the current sales pace. NAR’s housing statistics indicate that homes typically remained on the market for 29 days in December, up from 25 days in November.
Mortgage Rates & Affordability
Mortgage rates considerably impacted housing affordability in late 2023 and early 2024. The average 30-year fixed mortgage rate, as reported by Freddie Mac, fluctuated throughout December 2023, averaging around 6.82%.As of January 11, 2024, the average rate was 6.69%.
impact of Rising Rates
Rising mortgage rates reduced buyer purchasing power and contributed to the slowing pace of price increases. Higher rates make homeownership less affordable, leading to decreased demand and, consequently, a moderation in price growth. For exmaple, a $300,000 mortgage at 6% has a significantly higher monthly payment than the same mortgage at 3%.
New Home Sales
New home sales also experienced fluctuations. In December 2023, sales of new single-family houses were at a seasonally adjusted annual rate of 651,000, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. This is 9.5% below the revised november rate of 718,000.
Median Sales Price of New Homes
The median sales price of new houses sold in December 2023 was $413,200. The average sales price was $480,600. These figures demonstrate that new construction continues to offer a segment of the market at a higher price point.