The 2024 Housing Market Overview
The 2024 housing market began on a positive note. Inventory was on the rise, mortgage rates had fallen from a 23-year high of 7.79% in October 2023 to the mid-6% range, and homebuyers returned to the market. U.S. existing-home sales posted back-to-back monthly increases for the first time in more than two years in January and February.
However, mortgage rates began climbing again, surpassing 7% in April. This increase caused buyers to pull back, leading to a slump in sales during the traditionally busy spring buying season.
By summer, the market saw a surge of new listings, pushing inventory to its highest level since 2020, according to the National Association of REALTORS®. Although buyers had more options, the additional supply did little to temper home prices, which continued to reach record highs nationwide. Sales remained slow.
In September, mortgage rates began to ease, dropping to a yearly low of 6.08%. With inflation moving toward the 2% target, the Federal Reserve initiated a series of interest rate cuts, reducing the benchmark rate by one full percentage point. Buyers capitalized on the lower borrowing costs and increased inventory, resulting in a surge in existing-home sales during October and November. For the first time since May, home sales exceeded four million units.
Sales
- Pending sales increased by 13.8%, finishing 2024 at 4,645 units.
- Sold listings rose by 11.4%, ending the year at 4,570 units.
Listings
- Compared to the previous year, the number of homes available for sale decreased by 22.7%, with 551 active listings at the end of 2024.
- New listings increased by 5.8%, finishing the year at 6,590 units.
Prices
- The overall median sales price rose by 4.9% to $1,375,000 for the year.
- Single-family home prices increased by 4.8%, while Condo/TIC/Coop home prices rose by 2.3%.
List Price Received
- Sellers received, on average, 105.8% of their list price at sale, a year-over-year increase of 2.7%.
- Single-family homes received 111.3% of their list price, and Condo/TIC/Coop homes received 100.7%.
2025 Housing Market Outlook
Economists project a more active housing market in 2025. Existing-home sales are expected to increase, as are home prices, albeit at a moderate pace. Mortgage rates will vary throughout the year but are likely to remain within the 6%–7% range.
Buyers and sellers will continue to respond sensitively to fluctuations in mortgage rates, with the trajectory of rates having a major impact on market activity.
Inventory of new and existing homes is anticipated to improve in the new year, building on the supply gains made in 2024. Increases in both single-family and multifamily construction are expected, according to the National Association of Home Builders.
