On an annual basis, existing home sales declined to their lowest level—4.09 million—since 1995, according to an analysis by the National Association of Realtors. Median existing home prices also reached a record high of $389,800 in 2023.
Month-over-month in December, existing home sales declined 1.0% to a seasonally adjusted annual rate of 3.78 million. Compared with December 2022, existing home sales dropped 6.2%.
“The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” NAR Chief Economist Lawrence Yun said in a statement. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.”
Regionally, sales were unchanged in the Northeast, while sales in the Midwest and South declined 4.3% and 2.8%, respectively. The West saw a 7.8% increase in existing home sales compared with November.
Inventory of unsold existing homes fell 11.5% from November to 1 million, a 3.2-month supply at the current monthly sales rate.
The full NAR report can be found at this link.
