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.
New Listings were up 18.8 percent to 986. Pending Sales increased 9.7 percent to
828. Inventory grew 33.4 percent to 2,345 units.
Prices moved higher as Median Sales Price was up 2.3 percent to $271,418. Days
on Market increased 7.5 percent to 43 days. Months Supply of Inventory was up
46.7 percent to 2.2 months, indicating that supply increased relative to demand.
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 yearover-
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.
Information courtesy of CMLS*
