Summary
Home sellers slowed down their activity slightly in December, while the number of homes actively for sale continues to be higher compared to December 2023. It’s the 14th straight month of growth. The slowdown in the housing market can be attributed to the recent increase in mortgage rates. However, there was a slight increase in seller activity in December, with newly listed homes just 0.9% above December 2023 levels.
Report
The total number of homes for sale in December, including homes under contract but not yet sold, increased by 17.5% compared with December 2023, growing on an annual basis for the 12th month in a row. However this is down from 22.5% in November 2024. The number of homes under contract but not yet sold continued to rebound in December increasing by 7.4% compared with December 2023 and just under 50% less than November’s 14.7% gain. The recent slowdown in the housing market can be attributed to the increase in mortgage rates in November and December which were approximately 40 to 50 basis points higher than in September and October.
In December there was a slight increase in seller activity with newly listed homes just 0.9% above December 2023 levels. However this was a decrease from November’s rise of 2% indicating that fewer new home sellers are entering the market this winter compared to the previous fall. The typical home spent 70 days on the market in December which is 9 more days than December 2023 and 8 more days than November 2024. This marks the slowest December since 2019 and the slowest month since January 2023. It is also the 9th month in a row where homes spent more time on the market compared with 2023.
The national median list price in December was $402,502, about $15,000 less than in November and 1.8% lower than in December 2023. The typical listed home price has grown by 34% compared with December 2019.
And now a look at the 2025 housing market forecast by realtor.com. The overall outlook for the 2025 housing market according to realtor.com is a more balanced Market than in recent years with a slight increase in inventory giving buyers more options. However affordability will remain challenging for many due to continued home price growth. The expected trend of home prices in 2025 is for home prices to continue to increase but at a slower rate than in 2024. The increase is due to Rising mortgage rates and a potential increase in housing Supply. Affordability challenges could limit home sales growth. However realtor.com predicts a modest increase in home sales for 2025 due to an expected growing economy.
