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Full-year sales in 2023 hit 4.09 million units, the lowest mark since 1995.
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In December 2023, sales were 6.2% lower compared to December 2022.
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“The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” NAR economist Lawrence Yun said.
The housing market is coming off its weakest year of home sales since 1995, according to data out Friday from the National Association of Realtors.
For the full 12 months, total existing home sales hit 4.09 million units, and sales were lower across all regions in the US year-over-year.
Total existing-home sales came in at 3.78 million in December on a seasonally adjusted basis, falling 1.0% from November, the real estate group said. Sales dropped 6.2% from the prior year.
“The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” NAR economist Lawrence Yun said. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.”
The median existing home price for all housing types jumped 4.4% year-over-year to $366,500, with price increases hitting every US region, per NAR data.
For the full year, the median price reached a record high $389,800.
Elevated mortgage rates and low inventory kept many Americans sidelined over the last year, while also making existing homeowners reluctant to move and give up lower rates they’d locked in years ago.
To that point, the inventory of unsold existing homes in December dropped 11.5% from the prior month to 1 million units. That’s roughly equivalent to 3.2 months of supply at the current monthly sales pace, per NAR.
Freddie Mac data shows the average rate on the 30-year fixed loan hit 6.60%, as of January 18, up from 6.15% a year ago, though down from the recent peak of 8% in October.
“Despite sluggish home sales, 85 million homeowning 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. Creating a path towards homeownership for today’s renters is essential. It requires economic and income growth and, most importantly, a steady buildup of home construction.”
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