Existing-home sales in the United States increased by 2.2% in December, reaching a seasonally adjusted annual rate of 4.24 million, according to the National Association of REALTORS (NAR). This marks the highest pace since February 2024 and represents a 9.3% increase from the previous year, the largest year-over-year gain since June 2021.

Despite this quarterly improvement, total existing-home sales for the year fell to their lowest level in nearly three decades at 4.06 million, while the median price hit a record high of $407,500 in 2024.

"Home sales in the final months of the year showed solid recovery despite elevated mortgage rates," said NAR Chief Economist Lawrence Yun. He noted that "momentum is rising with sales climbing year-over-year for three straight months."

Inventory levels also saw changes, with unsold existing homes dropping by 13.5% from November to 1.15 million at December's end. However, this was an increase of 16.2% compared to a year ago.

The median existing-home price increased by 6.0% from December 2023 to $404,400. Yun attributed part of this rise to better performance in the upper-end market: “Sales rose by 35% from a year ago for homes priced above $1 million.”

First-time buyers accounted for 31% of December's sales, while cash transactions made up 28%. Individual investors or second-home buyers purchased 16% of homes during this period.

Mortgage rates averaged at 6.96% as of January 23, down slightly from a week prior but higher than one year ago.

Regionally, home sales grew in the Northeast and South but decreased slightly in the Midwest. Increases were observed across all regions when compared to last year's figures.

The NAR remains engaged in various aspects of real estate through its large membership base and offers resources on homebuying and selling processes via its website.