New Report Shows 2024 Marks the Worst Year for Existing Home Sales in Nearly Three Decades
(WCTU) — The U.S. housing market faced significant challenges in 2024, marking the worst year for existing home sales since 1995. According to a report released by the National Association of Realtors (NAR), only slightly over 4 million existing homes were sold nationwide last year, reflecting a historic low that highlights the mounting barriers to homeownership.
The median price of an existing home in 2024 reached an unprecedented $407,500, the highest in recorded history. High home prices, combined with elevated mortgage rates and constrained inventory, have created formidable obstacles for buyers across the country. The NAR's definition of existing homes includes single-family homes, townhomes, condos, and co-ops.
Regional Price Breakdown
December data from the NAR offers further insights into regional disparities in home prices:
Midwest: The most affordable region, with a median home price of just under $300,000. Prices rose 9% compared to December 2023.
South: Median prices were nearly $362,000, reflecting a 3.5% increase year-over-year.
Northeast: Homes in this region saw a sharp rise, with a median price of nearly $480,000, up 12% from the previous December.
West: Unsurprisingly, this region reported the highest prices, with a median of $614,500—a 6% increase from the prior year.
Market Trends
Despite the year-long challenges, December brought modest signs of improvement. The NAR reported a slight uptick in sales and some growth in inventory, though whether these trends will offset high costs and interest rates remains uncertain.
“Buyers are increasingly adjusting to the realities of the market,” NAR representatives noted, emphasizing that many are opting to move forward with purchases despite current conditions.
The high prices and constrained inventory of 2024 have highlighted the ongoing affordability crisis, forcing many would-be homeowners to reconsider their financial strategies. Industry experts anticipate continued volatility in the housing market, influenced by mortgage rate fluctuations and broader economic trends.
