SHARE

US Home Sales Plunge To Lowest Level Since 1995: Here's Why

Home sales in 2024 tumbled to their lowest level in nearly two decades but the Northeast offered a small glimmer of hope in an otherwise challenging year for the housing market.

A recently sold house.

A recently sold house.

Photo Credit: Pixabay/tkoch

Existing-home sales dropped to 4.06 million in 2024, the National Association of Realtors (NAR) said in a news release on Friday, Jan. 24. That figure marked the worst year for the US housing market since 1995.

The sales drop happened as the median price of a home reached a record high of $407,500, up six percent from 2023.

"The median home price was elevated partly due to the upper-end market's relative better performance," said NAR chief economist Lawrence Yun. "Sales rose by 35 percent from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000."

The sharp decline came despite a late-year rally, as December sales rose 2.2 percent from November. That increase reached a seasonally adjusted annual rate of 4.24 million sales.

While the December rebound offered some relief, the annual total was a stark reminder of a challenging year shaped by elevated mortgage rates and affordability struggles.

"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," Yun said.

The Northeast saw notable growth in December, with sales climbing 3.9 percent from November to an annual rate of 530,000, marking a 10.4 percent increase compared to December 2023. Homes also became more expensive, with the median price surging 11.8 percent year-over-year to $478,900.

While prices rose for 18 consecutive months, sales for homes priced under $250,000 dropped, underscoring challenges for entry-level purchasers. First-time home buyers made up just 24 percent of the market in 2024—a record-low share since NAR started collecting the data in 1981.

Inventory levels tightened significantly in December, with available homes falling 13.5 percent from November to 1.15 million units, equating to a 3.3-month supply.

to follow Daily Voice Edgewater-Mayo and receive free news updates.

SCROLL TO NEXT ARTICLE