As members of the North Central Jersey Association of Realtors (NCJAR), staying informed about the national housing market trends is crucial for guiding clients effectively. The latest report from the National Association of REALTORS® (NAR) reveals noteworthy developments in existing-home sales, offering valuable insights into the state of the market as we begin 2025.
Key Highlights
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Sales Growth: December saw a 2.2% increase in total existing-home sales compared to November, with a seasonally adjusted annual rate of 4.24 million. This marks a significant 9.3% year-over-year growth from December 2023.
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Annual Trends: Despite the December rebound, 2024 recorded the lowest annual existing-home sales volume since 1995 at 4.06 million. However, the median home price hit a record high of $407,500.
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Inventory Levels: Total housing inventory at the end of December stood at 1.15 million units, down 13.5% from November but up 16.2% year-over-year. The unsold inventory represented a 3.3-month supply at the current sales pace.
Regional Performance
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Northeast: Sales climbed 3.9% month-over-month to an annual rate of 530,000, up 10.4% from December 2023. The median price surged 11.8% to $478,900.
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Midwest: Sales slipped by 1.0% in December to an annual rate of 990,000 but still rose 6.5% year-over-year. The median price increased by 9.0% to $298,600.
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South: A 3.2% monthly sales increase brought the annual rate to 1.93 million, reflecting a 9.0% year-over-year rise. Median prices grew 3.4% to $361,800.
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West: Sales increased 2.6% month-over-month to an annual rate of 790,000, up 12.9% year-over-year. The median price rose by 6.0% to $614,500.
Market Dynamics
NAR Chief Economist Lawrence Yun noted the resilience of the housing market despite high mortgage rates. “Home sales in the final months of the year showed solid recovery,” Yun stated, emphasizing the positive impact of job and wage gains, as well as increased inventory levels.
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First-Time Buyers: First-time buyers accounted for 31% of December sales, reflecting an increase from 29% in December 2023. However, NAR’s 2024 Profile of Home Buyers and Sellers highlighted a record low annual share of 24% for first-time buyers.
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Cash Sales: These accounted for 28% of December transactions, up from 25% in November.
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Distressed Sales: Foreclosures and short sales remained minimal, comprising just 2% of sales.
Price Trends
The median existing-home price for December was $404,400, up 6.0% year-over-year. This increase was partly driven by strong performance in the upper-end market, with sales of homes priced above $1 million rising by 35% compared to the previous year. Conversely, sales of homes priced below $250,000 experienced declines.
Property Types
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Single-Family Homes: Sales rose 1.9% month-over-month to an annual rate of 3.83 million, with the median price increasing 6.1% to $409,300.
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Condos and Co-ops: Sales increased 5.1% from November to an annual rate of 410,000, with a median price of $359,000, up 4.5% year-over-year.
Mortgage Rates
As of January 23, the 30-year fixed-rate mortgage averaged 6.96%, a slight decrease from the previous week but up from 6.69% a year ago. Elevated rates continue to challenge affordability for many buyers, emphasizing the importance of strategic guidance from REALTORS®.
Conclusion
The December 2024 existing-home sales report showcases the resilience of the housing market amidst fluctuating conditions. For NCJAR members, these insights provide a valuable foundation to navigate client conversations and strategize effectively for the year ahead. Understanding these trends will empower you to advocate for the benefits of homeownership and identify opportunities in a dynamic market.
