December 2023

U.S. existing-home sales rose from a 13-year low, climbing 0.8% from the previous month and breaking a five-month streak in which sales declined, according to the National Association of REALTORS® (NAR). Despite the increase, sales were down 7.3% compared to the same period last year, as affordability challenges continue to hinder prospective buyers. Most of this period’s closed sales went under contract in October, when mortgage rates were at a two-decade high. With rates having dropped more than a full percentage point since then, existing-home sales may continue to pick up in the months ahead.

Closed Sales decreased 7.1 percent for single-family homes and 3.2 percent for condos. Pending Sales increased 18.0 percent for single-family homes but decreased 14.3 percent for condos. Inventory decreased 2.4 percent for single-family homes but increased 48.7 percent for condos.

The Median Sales Price was down 3.5 percent to $361,750 for single-family homes but increased 3.4 percent to $248,000 for condos. Days on Market decreased 6.9 percent for single-family homes but increased 11.2 percent for condos. Months Supply of Inventory decreased 2.9 percent for single-family homes but increased 72.0 percent for condos.

Low levels of inventory continue to impact U.S. home sales, offering few options for aspiring buyers to choose from. Going into December there were 1.13 million units for sale, down 1.7% from the previous month but up 0.9%
from the same period last year, for a 3.5 months’ supply at the current sales pace. As a result, sales prices remain high nationwide, with NAR reporting the median existing-home price rose 4% annually to $387,600 as of last
measure, the fifth consecutive month of year-over-year price gains.  Homebuyer demand is picking up, and without a significant increase in supply, experts believe home prices will likely remain elevated for some time
to come.