There Is Some Good News In The National Housing Industry
Good Monday Morning!
There is some good news in the national housing industry. Home sales were up in December of 2024. This is even with mortgage interest rates climbing a bit. If we see the same trend in January of 2025, there will be some optimism for a continued improving housing market. Here is a recent article from "NAR".
WASHINGTON (January 24, 2025) – Existing-home sales climbed in December, according to the National Association of REALTORS®. Sales advanced in three major U.S. regions and slipped in the Midwest. Year-over-year, sales accelerated in all four regions.
On an annual basis, existing-home sales (4.06 million) declined to the lowest level since 1995, while the median price reached a record high of $407,500 in 2024.
Total existing-home sales1 – completed transactions that include single-family homes, townhomes, condominiums and co-ops – elevated 2.2% from November to a seasonally adjusted annual rate of 4.24 million in December. Year-over-year, sales swelled 9.3% (up from 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. Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market."
Total housing inventory2 registered 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 sits at a 3.3-month supply at the current sales pace, down from 3.8 months in November but up from 3.1 months in December 2023.
The median existing-home price3 for all housing types in December was $404,400, up 6.0% from one year ago ($381,400). All four U.S. regions posted price increases.
"The median home price was elevated partly due to the upper-end market’s relative better performance," Yun added. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”
REALTORS® Confidence Index
According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 35 days in December, up from 32 days in November and 29 days in December 2023.
First-time buyers were responsible for 31% of sales in December, up from 30% in November 2024 and 29% in December 2023. NAR’s 2024 Profile of Home Buyers and Sellers – released November 20244 – found that the annual share of first-time buyers was 24%, the lowest ever recorded.
Cash sales accounted for 28% of transactions in December, up from 25% in November but down from 29% in December 2023.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in December, up from 13% in November and identical to December 2023.
Distressed sales5 – foreclosures and short sales – represented 2% of sales in December, unchanged from November and the previous year.
Mortgage Rates
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.96% as of January 23. That’s down from 7.04% one week ago but up from 6.69% one year ago.
Single-family and Condo/Co-op Sales
Single-family home sales moved higher by 1.9% to a seasonally adjusted annual rate of 3.83 million in December, up 10.1% from the prior year. The median existing single-family home price was $409,300 in December, up 6.1% from December 2023.
Existing condominium and co-op sales increased 5.1% in December to a seasonally adjusted annual rate of 410,000 units, up 2.5% from one year ago (400,000). The median existing condo price was $359,000 in December, up 4.5% from the previous year ($343,500).
Have An Awesome Week!
Stay Healthy! Stay Safe! Remain Positive! Trust in God!
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