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Present house gross sales within the U.S. in 2024 had been the bottom in almost 30 years, as house costs hit an all-time excessive.
The Nationwide Affiliation of Realtors launched knowledge that confirmed present house gross sales declined to the bottom degree since 1995 final yr, with 4.06 million houses offered on an annual foundation.
In the meantime, the median house value rose to a document excessive 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,” mentioned Alice Zheng, an economist at Citigroup. “We do not expect much further upside for housing demand near-term.”
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Present house gross sales fell to the bottom degree in almost 30 years in 2024. (iStock / iStock)
Present house gross sales did present indicators of rising within the closing months of 2024, rising 2.2% from November to a seasonally adjusted annual fee of 4.24 million in December. 12 months-over-year, gross sales had been up 9.3% from an annual fee of three.88 million in December 2023.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” mentioned 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 mentioned. “Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market.”
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Present house gross sales elevated on an annual foundation in all 4 areas analyzed by the NAR, whereas costs additionally elevated in every of the 4 areas.
Gross sales had been up 9.3% on a year-over-year foundation – the biggest achieve since June 2021, which was largely pushed by transactions for housing valued at over $500,000.
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Elevated mortgage charges have chilled the housing market. (Justin Sullivan/Getty Pictures / Getty Pictures)
The median house value for present houses was $404,400 – a rise of 6% from $381,400 a yr in the past.
“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun mentioned. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”
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First-time homebuyers accounted for 31% of house gross sales in December, up from 30% in November and 29% in December 2023.
NAR’s “Profile of Home Buyers and Sellers” that was launched in November discovered that the annual share of first-time house patrons was 24%, the bottom ever recorded.
Reuters contributed to this report.
