Existing Home Sales Continued Climbing In December

Existing home sales continued rising in December, seeing a massive annual increase.

Sales increased 2.2% to a seasonally adjusted annual rate of 4.15 million, down from November’s 4.8% spike but still moving, according to the National Association of Realtors.

They were up 9.6% from the year prior, the largest year-over-year gain since June 2021.

All major regions experienced annual gains for both sales and price appreciation. Month-over-month, the South, Northeast, and West saw increases, while the Midwest clocked a decline.

“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. Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market.”

Buyers and sellers alike seem to be adjusting to the new high rate environment. New home purchase applications jumped by 8.9% in December, with a major boost in FHA applications, reached their second highest level in MBA’s history.

Total housing inventory at the end of December was 1.15 million units, down 13.5% from November but up 16.2% YOY. This is a 3.3 months supply at the current sales pace.

The median existing price was $404,400, up 6% annually. All four regions posted price increases.

Yun noted that a surge in $1 million-plus home sales, which jumped 35% YOY,  influenced typical prices. Sales fell for homes priced under $250,000.