December 2024 Housing Market: A Surge in Sales and Prices

December 2024 Housing Market Overview

This December was notable in the housing sector, as it marked the eighth consecutive month of 2024 seeing sales surpass those of 2023. Home sales saw a remarkable increase of 13.3% compared to December of the previous year, and also rose 4.4% from November 2024. Interestingly, the inventory levels across the 52 metro areas surveyed reflected a year-over-year increase of 22.0%. However, a typical seasonal decline was observed as inventory dropped 12.4% since November.

Sales Prices and Market Trends

The median sales price for homes in December 2024 reached $427,000, up from $402,000 in December 2023, indicating a steep rise of 6.2%. In contrast, this median price was slightly lower than November's, down by approximately $3,000. The market has exhibited a consistent pattern of improving sales prices, but buyers are still navigating challenges related to affordability.

Days on Market and Home Closing Times

Interestingly, homes took longer to sell in December 2024 compared to the prior year. The average time on the market extended to 54 days, marking a week-long increase compared to the same period in 2023. The duration that homes remained on the market is a valuable metric for potential buyers as it indicates both demand and sales activity. Erik Carlson, CEO of RE/MAX Holdings, noted that the improved inventory levels are a promising sign for prospective buyers.

Regional Insights: Notable Market Performance

Among the major markets, one stood out with impressive performance. The Denver metro area almost doubled the national average for home sales growth, experiencing a significant year-over-year rise of 26.5%. Local real estate broker Christine Dupont-Patz observed that buyers were strategically monitoring the market and capitalizing on the increased inventory during what is traditionally a slower winter season. Notably, closings in Denver jumped over 25% compared to December of the previous year, suggesting potential vibrancy moving into the new year.

Market Highlights and Notable Metrics

Key metrics that stood out included:

• Buyers paying an average of 98% of the asking price in December, consistent with the previous year’s findings.
• The months' supply of inventory now sits at 3.0, reflecting an increase from the 2.5 months recorded just one year ago.
• New listings in the surveyed areas rose by 7.5% year-over-year, providing a more robust selection for buyers compared to previous Decembers.

Market Performance by Region

Several markets demonstrated remarkable increases in new listings compared to December 2023, most notably Burlington, VT (+32.1%), Manchester, NH (+30.6%), and Las Vegas, NV (+30.2%). Conversely, some markets experienced declines, with St. Louis, MO leading with a year-over-year decrease of 13.7% in new listings.

Closed Transactions and Year-End Statistics

In the realm of closed transactions, December saw a 13.3% increase in home sales across the surveyed areas, with Fayetteville, AR, experiencing the highest surge at 29.0%. Closing percentages reflect the demand dynamics, and markets like Denver, CO, and Seattle, WA, also showcased robust performance with notable increases of 26.5% and 24.2%, respectively.

Exploring Price Ratios and Average Days on Market

The average close-to-list price ratio across the metro areas was recorded at 98%, consistent with December 2023 but a decrease from November’s 99%. This statistic underscores the competitive nature of the market, especially in areas like Miami, where the ratio was notably lower at 93.5%

Conclusion: A Promising Outlook for Home Buyers

As we reflect on the housing dynamics of December 2024, it is clear that market movement is steadily upward in terms of both sales and prices. The resilience of buyers and the adaptability of sellers amidst changing market conditions highlight a thriving ecosystem within the housing sector. The ongoing attention to inventory management and pricing strategies promise an exciting market environment in the forthcoming months.

Frequently Asked Questions

What was the median home price in December 2024?

The median sales price for homes in December 2024 was $427,000.

How much did home sales increase from December 2023?

Home sales increased by 13.3% from December 2023 to December 2024.

What are some factors affecting the housing market in December 2024?

Factors affecting the market include increased inventory, affordability challenges, and seasonal trends impacting buyer activity.

Which market saw the most significant growth in closed transactions?

Fayetteville, AR, posted a remarkable increase in closed transactions, showing a growth of 29.0% year-over-year.

How do current inventory levels compare to last year?

Current inventory levels have risen by 22.0% compared to December 2023, but have decreased 12.4% since November 2024.

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