In December 2024, existing-home sales—which include single-family homes, townhomes, condos, and co-ops—experienced a significant uptick, marking the largest year-over-year increase since June 2021. Sales rose by 9.3% compared to the previous year and saw a 2.2% month-over-month increase. This positive trend suggests a potential recovery in the housing market after a challenging 2024, which had the lowest level of existing-home sales in nearly three decades.

NAR Chief Economist Lawrence Yun attributes this momentum to recent job and wage gains, as well as an increase in the number of homes available for sale. He notes that, despite elevated mortgage rates, the market is showing resilience, with sales climbing year-over-year for three consecutive months.

Home prices have also continued to rise, with the median existing-home sales price increasing by 6% in December compared to the previous year. In 2024, median home prices reached a record high of $407,500. The higher-end market has performed particularly well, with sales of homes priced above $1 million increasing by 35% from the prior year. Conversely, sales of homes priced under $250,000 have declined, posing challenges for first-time buyers.

Inventory levels have improved, with a 16% increase in unsold existing home listings compared to the previous year, providing more options for buyers and increasing competition among sellers. Builders are also contributing by ramping up the construction of new single-family homes, which is expected to add to inventory levels and potentially ease the housing affordability crisis.

Regionally, existing-home sales rose in three of the major U.S. regions in December, led by the Northeast, while the Midwest experienced a slight decrease. Overall, both sales and home prices have accelerated year-over-year across all four regions.

These developments offer a hopeful outlook for the housing market in 2025, indicating potential stabilization and growth after a period of decline.