Housing Market Rebounds to Close Out 2024

Existing-home sales finished strong in 2024, climbing 9.3% year over year—the largest increase since June 2021—according to the National Association of Realtors (NAR). Lawrence Yun, NAR’s chief economist, pointed out that while winter sales are usually slower than in spring and summer, momentum is growing, with sales increasing for three straight months. He anticipates that buyers will continue to see the long-term benefits of homeownership.

Historic Low Sales—Could They Continue?

Despite the late-year boost, overall home sales in 2024 hit their lowest level in nearly 30 years, totaling 4.06 million transactions. Limited inventory played a major role, with available homes dropping 13.5% from November to December, leaving just 1.15 million homes on the market—a 3.3-month supply at the current sales pace. Affordability remained a challenge, as Freddie Mac reported 30-year fixed mortgage rates hovering around 7%. With tight inventory and affordability concerns, both buyers and sellers will need to navigate the 2025 housing market carefully.

First-Timers, Cash Buyers, and Investors

First-time buyers made a stronger showing at the end of the year, accounting for 31% of December’s home sales, up from 29% the year before. Meanwhile, all-cash buyers remained active, making up 28% of December transactions, just slightly below the 29% recorded in 2023. Investors and second-home buyers—who make up the majority of all-cash purchases—were responsible for 16% of all transactions, unchanged from the previous year.

Regional Sales Breakdown - South

Existing-home sales annual rate of 1.93 million, an increase of 3.2% from November 2024 and 9% from December 2023.