December 2024 Housing Market Trends: A Comprehensive Analysis

The housing market continued to see growth in December, with the number of homes actively for sale increasing by 22.0% compared to last year. This marks the fourteenth straight month of growth, but seasonality has caused the inventory to drop to its lowest level since June.

Total unsold homes, including those under contract, increased by 17.5% compared to last year. Home sellers slowed down their activity slightly in December, with only a 0.9% increase in newly listed homes compared to last year.

The median price of homes for sale in December was down 1.8% compared to last year, at $402,502. However, the median price per square foot grew by 1.3%, suggesting that more affordable homes are becoming available. Homes spent 70 days on the market, the slowest December in five years, marking a nine-day increase compared to last year.

In terms of pending listings, there was a 7.4% increase compared to last year, which is lower than the previous month’s gain of 14.7%. This slowdown is partly due to higher mortgage rates in November and December. However, the forecast for 2025 suggests a modest increase of 1.5% in home sales as rates adjust and time moves forward.

In all regions, active inventory saw growth compared to the previous year. The South had a 26.7% increase, the West saw a 23.7% growth, the Midwest had a 15.2% increase, and the Northeast saw a 6.9% rise. Inventory levels are closer to pre-pandemic numbers in the South compared to the other regions.

Most large metros saw an increase in home inventory compared to last year, with Miami, Orlando, and Denver leading in growth. However, inventory levels are still lower compared to pre-pandemic years for many metros. Newly listed homes also saw an increase in the South, while other regions experienced a decrease compared to previous years.

Overall, homes are spending more time on the market than last year but less than pre-pandemic levels. The South and West regions are experiencing higher time on the market compared to the same time last year, while the Midwest and Northeast are closer to last year’s numbers.

While the market is showing signs of growth and change, reflecting on these trends can help potential buyers and sellers navigate the current real estate landscape.