Pictured: new homes being built during the summer of 2024 near Wilmington, NC, where home values have gone up. These homes were priced at $1 million each, according to Zillow.
© Matthew Prensky / USA TODAY NETWORK
(Chicago, IL) – Sales of existing US homes are on the rise. The key housing market indicator posted strong gains in December. In fact, existing home sales rose by the highest amount observed in three and a half years. The National Association of Realtors reports sales of previously owned homes rose 2.2% month-over-month, hitting an annual rate of 4.5 million units sold.
NAR’s chief economist says the closing months of 2024 experienced “solid recovery,” in spite of high mortgage rates. And the median sale price of a home hit $407,500 in 2024 — a new record.
Meanwhile, the cost of housing is rising all around. That includes rents for apartments and home. Single-family home rents have risen 41% higher than pre-pandemic levels. Rent for multi-family units have grown by 26% over the same time period.
For the housing market as a whole, higher mortgage rates (on a historical basis) has depressed demand. But at the same time, there hasn’t been a high level of new construction, so rents have remained elevated. Plus, according to economists at Zillow, millennials in their 40s are looking to expand and move into larger living spaces — boosting demand.
Elsewhere in economic data, the University of Michigan’s final reading for January’s consumer sentiment came in lower. That was tied to inflation worries. Annual inflation expectations rose above the 3.3% mark — hitting the highest level since last May. According to the survey’s chief economist, sentiment declined across all age groups and income levels. Consumers said they were increasingly buying things in advance — so as to avoid future price hikes.
