Existing home sales fall to lowest level since 1995

Jan 27

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Craig Nigrelli Anchor/Reporter

By Craig Nigrelli (Anchor/Reporter ), Kaleb Gillespie (Video Editor ), Brock Koller (Senior Producer)

The latest home sales numbers paint a discouraging picture for the real estate industry. Existing home sales fell in 2024 to the lowest level since 1995.

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How many homes sold?

The National Association of Realtors reported 4.06 million existing homes sold in the U.S. last year. It’s a significant drop from the 5 million sold two years prior in 2022.

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What are the key factors?

Two factors have hurt the market: high mortgage rates and lack of supply.

Housing costs are more expensive with the median listing price hitting an all-time high of $407,500 last year. That’s about a 5% increase from 2023.

According to Zillow, the interest rate for a 30-year fixed-rate mortgage as of Monday, Jan. 27, is 6.74%. A 15-year fixed rate is 6.03%, and an Adjustable Rate Mortgage (ARM) is 6.69%.

Zillow Chief Executive Jeremy Wacksman told The Wall Street Journal that the real estate industry is suffering from an availability crisis. He said the shortage amounts to about 4.5 million homes.

He also said the housing market would have to see the Federal Reserve cut interest rates more than once or twice for mortgage rates to follow.

What’s ahead in 2025?

Zillow economists forecasted a slight increase in home sales in 2025, as well as a modest price appreciation.

Tags: Economy, Home sales, Housing Market, Real estate

[CRAIG NIGRELLI]

THE NUMBERS ARE COMING IN AND THEY PAINT A DISCOURAGING PICTURE FOR THE REAL ESTATE INDUSTRY. EXISTING HOME SALES FELL IN 2024, TO THEIR LOWEST LEVEL SINCE 1995. THE NATIONAL ASSOCIATION OF REALTORS SAYS 4.06 MILLION EXISTING HOMES, SOLD IN THE U.S. LAST YEAR, A SIGNIFICANT DROP-OFF FROM 5 MILLION JUST TWO YEARS PRIOR IN 2022.
TWO FACTORS ARE DRIVING THE MARKET. HIGH MORTGAGE RATES AND LACK OF SUPPLY. PRICES ARE MORE EXPENSIVE AS WELL, WITH THE MEDIAN LISTING PRICE, HITTING AN ALL-TIME HIGH OF $407,500 LAST YEAR, THAT’S ABOUT A 5% INCREASE FROM THE YEAR BEFORE.
ACCORDING TO THE HOME LISTING SITE, ZILLOW, THE INTEREST RATE FOR A 30-YEAR FIXED RATE MORTGAGE IS 6.74 %, AS OF THE TIME OF THIS REPORT ON MONDAY JANUARY 27TH. A 15-YEAR FIXED IS 6.03 % AND WHAT IS CALLED AN ADJUSTABLE RATE MORTGAGE OR ARM, IS 6.69 %.
ZILLOW CHIEF EXECUTIVE JEREMY WACKSMAN TOLD THE WALL STREET JOURNAL,
A SEVERE SHORTAGE OF AVAILABLE HOMES IS A MAJOR OBSTACLE FOR THE HOUSING MARKET, “ YOU REALLY CAN BOIL THE HOUSING AFFORDABILITY CRISIS DOWN TO AN AVAILABILITY CRISIS. GETTING MORE HOMES AVAILABLE IS GOING TO BE WHAT ULTIMATELY WHAT STARTS TO UNSTICK THE HOUSING MARKET. “HE SAYS THAT SHORTAGE AMOUNTS TO ABOUT 4-AND-A-HALF MILLION HOMES.
WACKSMAN WENT ON TO SAY THAT ACTION BY THE FEDERAL RESERVE WOULD HELP WITH AFFORDABILITY. HE SAID THE HOUSING MARKET WOULD NEED TO SEE MORE THAN ONE OR TWO INTEREST RATE CUTS IN ORDER FOR MORTGAGE RATES TO FOLLOW.
LOOKING AHEAD, ZILLOW ECONOMISTS ARE FORECASTING A SLIGHT INCREASE IN HOME SALES IN 2025, AS WELL AS A MODEST PRICE APPRECIATION. I’M C-N. FOR MORE UNBIASED UPDATES., DOWNLOAD THE STRAIGHT ARROW NEWS APP

Existing home sales fall to lowest level since 1995

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