Sales of previously occupied US homes hit a nearly 30-year low in 2024, continuing the trend from 2023. Existing home sales totaled 4.06 million, marking a 0.7% decline. Key factors include elevated mortgage rates, which reached a 23-year high near 8%, and a scarcity of homes listed for sale. The median home price also rose 4.7% to an all-time high of $407,500. As a result, increased borrowing costs and limited inventory have stymied many prospective buyers, leaving many sidelined in the market.
How is it possible that home sales can be this low, considering that the US population has increased by more than 70 million over this time period from 1995 to today? One can partly answer that question because of the affordability issue. Record-high home prices, mortgage rates having risen, but also lack of inventory.
The elevated home loan borrowing costs have limited home hunters' buying power on top of years of soaring prices. A dearth of homes for sale, meanwhile, has helped prop up prices, helping to keep many homebuyers and sellers on the sidelines.
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