Existing home sales fall to lowest level in nearly 30 years

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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.»

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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.»

HOUSING SUPPLY JUMPS TO 4-YEAR HIGH –