December Sees 5.1% Rise in NAR Existing-Home Sales
In December, existing-home sales saw a notable increase of 5.1%, marking a significant shift in the American real estate market. This data comes from the National Association of REALTORS® (NAR) Existing-Home Sales Report.
Overview of December Existing-Home Sales
The seasonally adjusted annual rate of existing-home sales rose to 4.35 million units. This uptick represented a 1.4% increase compared to the previous year. Sales trends varied across different regions of the country, with notable differences in year-over-year performance.
Regional Sales Performance
- Northeast: 2.0% increase month-over-month; annual sales decreased by 1.9%. Median price: $496,700.
- Midwest: 2.0% decrease month-over-month; stable year-over-year. Median price: $306,000.
- South: 6.9% increase month-over-month; 3.6% increase year-over-year. Median price: $360,200.
- West: 6.6% increase month-over-month; stagnant year-over-year. Median price: $605,600.
Inventory and Market Conditions
Current inventory stands at 1.18 million units, reflecting an 18.1% decrease from November. However, it is a 3.5% increase compared to December 2024. The latest figures indicate a 3.3-month supply of unsold homes, which has decreased from 4.2 months in November.
Median Sales Prices
The median sales price for existing homes in December reached $405,400. This figure represents a 0.4% increase from the previous year.
Single-Family and Condominium Sales
- Single-Family Homes: Sales increased by 5.1% month-over-month. Annual rate of 3.95 million. Median price: $409,500.
- Condominiums and Co-ops: Sales rose by 5.3% month-over-month, but fell 2.4% year-over-year. Median price: $364,400.
Mortgage Rate Changes
The average rate for a 30-year fixed mortgage decreased to 6.19% in December, down from 6.24% in November and significantly lower than 6.72% one year ago.
Expert Insights
NAR Chief Economist Lawrence Yun highlighted the challenges of 2025 for homebuyers, citing high prices and low sales. However, he noted that the fourth quarter showed improvements due to lower mortgage rates and slower price growth. December was the strongest month for home sales in nearly three years, with broad-based gains across all major regions.
Yun also pointed out that inventory levels remain tight. Homeowners are taking more time to decide when to sell, which is impacting available listings. Increased inventory is anticipated as the market transitions into February.
The need for updated information continues as the NAR plans to release its Pending Home Sales Index for December on January 21 and the Existing-Home Sales figures for January on February 12.
