WASHINGTON (AFP) – Sales of previously owned United States (US) homes slipped to their weakest level in about three decades last year on the back of high housing prices and mortgage rates, according to industry data released.
Existing home sales came in at 4.06 million on an annual basis in 2024, the lowest level since 1995, said the National Association of Realtors (NAR).
The weakness came despite population and job growth over the past three decades, NAR chief economist Lawrence Yun said on a call with reporters.
But he pointed to affordability issues with elevated home prices, alongside higher mortgage rates and a lack of inventory to explain the trend. In December, however, existing home sales rose by 2.2 per cent from November, reaching a seasonally adjusted annual rate of 4.2 million, the NAR said.
This was its strongest pace since February 2024 – and in line with analysts’ expectations.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” said Yun in a statement.
While sales during the winter months are typically softer than in the spring and summer, “momentum is rising with sales climbing year-over-year for three straight months,” Yun added.
“Job and wage gains, along with increased inventory, are positively impacting the market,” he said.
From a year ago, existing home sales were up 9.3 per cent in December – the largest year-on-year gain since June 2021 – the NAR said.
