That is why home sales in 2024 fell to the lowest level in nearly 30 years

Sales of previously residential houses in the US fell in 2024 to a lower level of nearly 30 years in as many years as raising mortgage rates, raising house prices and few property in the market raise buyers possible houses outside the market.

The National Resident Association said Friday that existing US house sales reached 4.06 million last year, a decline of 0.7% by 2023.

This is the weakest year for home sales since 1995, echoing full year results from 2023.

The national average home price for the entire year increased 4.7% to the highest level of all time of $ 407,500, NAR said.

The US housing market has been in a decline in sales since 2022, when mortgage rates began to rise from the lowest levels of the Pandemia era.

The average rate for a 30-year mortgage rose to the highest level of 23 years of nearly 8% in October 2023 and fell to a lower 2-year level last September, but was mainly about 7%, according to Freddie Mac Mortgage Buyers.

Home borrowing costs have limited the purchasing power of home hunters, at the top of years of price growth.

The lack of homes for sale, meanwhile, has helped raise prices, helping to keep many shoppers and homemakers aside.

“How is it possible that home sales can be so low, given that the US population has grown by more than 70 million over this time period from 1995 to today?” Asked Lawrence Yun, NAR chief economist. “One can partially answer this question because of the issue of affordability. “Record prices of houses, mortgage rates have increased, but also lack of inventory.”

At the end of December, there were only 1.15 million houses in the market, Nar said.

This is much below the monthly historic average of about 2.25 million.

The inventory available at the end of last month reaches a 3.3 -month supply, walking at the current sales pace.

In a more balanced market among buyers and sellers, there is a 4-6-month offer.

Home sales in December increased 2.2% from the previous month based on seasonally adjusted at an annual rate of 4.24 million.

This is the third monthly growth on sale and tops the 4.2 million pace provided by analysts surveyed by Factset.

Sales increased by 9.3% in December compared to the same month last year.

The average price of home sales rose to 18th consecutive months in December to $ 404,000, 6% more than a year earlier.

Limited inventory, especially in the most affordable price range of a given market, helps increase prices.

This is one of the reasons why many home buyers for the first time, who have no capital to put in their advance, continue to struggle to cope with a home.

They made up 31% of all houses sold last month, from 30% in November and 29% in December 2023.

However, the annual part of the buyers for the first time was 24%.

Historically it was 40%.