Sales of existing homes in the US fell last year to the lowest level in almost three decades, as sky-high home prices and elevated mortgage rates squeezed home buyers.
Sales of previously owned homes, which make up the vast majority of the market, totaled 4.06 million in 2024, the National Association of Realtors said Friday. That’s the lowest level since 1995 and slightly below 2023’s similarly anemic levels.
The average rate on a conventional, 30-year fixed mortgage reached a peak of 7.22% last year. After briefly slipping to nearly 6%, it has ratcheted up in recent weeks, reaching 7.04% last week and ticking down to 6.96% this week, according to Freddie Mac.
The median price of an existing home, meanwhile, has climbed for 18 months straight, reaching a record high of $407,500 in 2024. In December, the median price was $404,400.
Despite the tough conditions for buyers, there was some momentum toward the end of 2024, with existing-home sales rising 2.2% in December from the prior month to a seasonally adjusted annual rate of 4.24 million, the fastest pace since February 2024.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” said NAR chief economist Lawrence Yun in a release. “Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market.”