Existing home sales tumbled to lowest level since 1995 last year

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U.S. existinghome sales retreated in December after rising the previous month, closing out the worst year for the housing market in nearly three decades.

Sales of previously owned homes tumbled 1% in December from the previous month to an annual rate of 3.78 million units, according to new data released Friday by the National Association of Realtors (NAR). It marked the slowest pace of sales since August 2010. 

On an annual basis, existing home sales fell to the lowest level since 1995.

«The latest month's sales look to be the bottom before inevitably turning higher in the new year,» said Lawrence Yun, NAR’s chief economist. «Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.»

HOME FORECLOSURES ARE ON THE UPSWING NATIONWIDE

Homes in Hercules, California, on Dec. 26, 2023.  (David Paul Morris/Bloomberg via Getty Images / Getty Images)

There were about 1 million homes for sale at the end of December, according to the report, down 11.5% from the previous month but up 4.2% from the same time one year ago.

The decline in inventory helped to drive prices higher last month. The median price of an existing home sold in December hit $389,800 – a record high.

«Despite sluggish home sales, 85 million home-owning households enjoyed further gains in housing wealth,» Yun said. «Obviously, the recent, rapid three-year rise in home prices is unsustainable. If price increases continue at the current pace, the country could accelerate into haves and have-nots.» 

MORT