Existing-home sales concluded 2024 on a high note, reaching a 10-month peak in December and marking three consecutive months of growth, as reported by the National Association of Realtors This Week in Real Estate. Total existing-home sales increased by 2.2% in December compared to November and surged by 9.3% year-over-year, the largest annual gain since June 2021. The median sales price for existing homes in December rose by 6% from the previous year, continuing an 18-month streak of year-over-year price increases. The average mortgage rate for a 30-year fixed home loan experienced its first decline in six weeks, dropping to 6.96% from 7.04% the previous week, according to Freddie Mac. Additionally, home sellers in 2024 achieved an average profit of $122,500, representing a 53.8% return on investment (ROI), as detailed in ATTOM’s Year-End 2024 U.S. Home Sales Report. Below are key events from the third week of January impacting our business: EXISTING-HOME SALES ASCENDED 2.2% IN DECEMBER. Total existing-home sales elevated 2.2% from November to a seasonally adjusted annual rate of 4.24 million in December. Year-over-year, sales swelled 9.3% (up from 3.88 million in December 2023). “Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” said NAR Chief Economist Lawrence Yun. “Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months. Total housing inventory registered at the end of December was 1.15 million units, down 13.5% from November but up 16.2% from one year ago (990,000). Unsold inventory sits at a 3.3-month supply at the current sales pace, down from 3.8 months in November but up from 3.1 months in December 2023. The median existing-home price for all housing types in December was $404,400, up 6.0% from one year ago ($381,400). Single-family home sales moved higher by 1.9% to a seasonally adjusted annual rate of 3.83 million in December, up 10.1% from the prior year. The median existing single-family home price was $409,300 in December, up 6.1% from December 2023. Read the full story here.AVERAGE 30-YEAR RATE SLIPS UNDER 7%, THE FIRST DROP IN SIX WEEKS. Mortgage rates dropped for the first time in six weeks. The average 30-year fixed-rate mortgage rate was 6.96% through Wednesday, down from 7.04% a week earlier, according to Freddie Mac data. “While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications,” Sam Khater, Freddie Mac’s chief economist, said in a statement. Applications for new home purchases rose 1% through Friday compared to a week earlier, though refinancing applications fell 3%, according to the Mortgage Bankers Association. In a new forecast released on Wednesday, Fannie Mae sees mortgage rates staying relatively elevated and ending the year at 6.5%, up from 6.2%. Read the full story here.HOME SELLER PROFITS SLIDE AGAIN IN 2024 DESPITE CONTINUED PRICE GAINS. ATTOM released its Year-End 2024 U.S. Home Sales Report on Thursday, which shows that home sellers made a $122,500 profit on typical sales nationwide in 2024, generating a 53.8 percent return on investment. But even as both measures remained near record levels, and home prices kept rising around the country, the profit margin on median-priced sales nationwide decreased from 56.9 percent from 2023. The gross profit on median-priced single-family home and condo sales did inch up about $2,000 from 2023. Margins fell back as the increase in home values failed to keep up with larger price spikes recent sellers had been paying when they originally bought their homes. Homeowners in the U.S. who sold in the fourth quarter of 2024 had owned their homes an average of 8.18 years, the longest tenure since at least 2000. All-cash purchases accounted for 38.9 percent of single-family home and condo sales in 2024, or about one of every three. The latest portion, up from 38.1 percent in 2023, represented the highest level since 2013. Foreclosure sales to lenders accounted for just 1.4 percent, or one of every 72 single-family home and condo sales in 2024. That was the second lowest level since 2005. Last year’s figure was down slightly from 1.5 percent of sales in 2023. Read the full story here.
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