According to the National Association of REALTORS®, the housing market is heating up! Existing-home sales surged 9.3% year-over-year in December, marking the largest annual increase in more than three years. Sales also rose 2.2% month-over-month, signaling renewed confidence and fresh opportunities. After a challenging 2024, this rebound offers hope for a stronger market ahead.
Home Prices Hit Record Highs
Despite last year’s slowdown, home prices have remained strong. The median existing-home price rose 6% year-over-year to $407,500 in December, setting a new record. Many homeowners are seeing their equity grow, even as affordability remains a challenge for buyers.
More Listings, More Competition
Housing inventory is on the rise, giving buyers more choices but creating added competition for sellers. Unsold listings increased 16% compared to a year ago, with the supply now at 3.3 months at the current sales pace. Additionally, homebuilders are ramping up single-family construction, further boosting available inventory.
Mortgage Rates: A Key Market Driver
The 30-year fixed-rate mortgage dipped slightly to 6.96% after briefly exceeding 7%, according to Freddie Mac. Higher rates have pressured affordability, slowing buyer demand at times, but recent declines could encourage more activity in the coming months.
Regional Market Trends
Sales improved in most major U.S. regions, with the Northeast leading the way. The Midwest was the only region to see a slight decline. However, both sales and home prices increased year-over-year in all four regions, showing resilience in the face of economic shifts.
With sales gaining momentum and inventory expanding, buyers and sellers alike should watch these trends closely. The 2025 housing market may hold new opportunities for those ready to act.
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Source: nar.realtor