Posted on 01/27/2025 8:45:20 AM PST by SeekAndFind
Existing-home sales dropped to 4.06 million in 2024, the National Association of Realtors (NAR) said in a news release on Friday, Jan. 24. That figure marked the worst year for the US housing market since 1995.
The sales drop happened as the median price of a home reached a record high of $407,500, up six percent from 2023.
"The median home price was elevated partly due to the upper-end market's relative better performance," said NAR chief economist Lawrence Yun. "Sales rose by 35 percent from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000."
The sharp decline came despite a late-year rally, as December sales rose 2.2 percent from November. That increase reached a seasonally adjusted annual rate of 4.24 million sales.
While the December rebound offered some relief, the annual total was a stark reminder of a challenging year shaped by elevated mortgage rates and affordability struggles.
"Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months," Yun said.
The Northeast saw notable growth in December, with sales climbing 3.9 percent from November to an annual rate of 530,000, marking a 10.4 percent increase compared to December 2023. Homes also became more expensive, with the median price surging 11.8 percent year-over-year to $478,900.
While prices rose for 18 consecutive months, sales for homes priced under $250,000 dropped, underscoring challenges for entry-level purchasers. First-time home buyers made up just 24 percent of the market in 2024—a record-low share since NAR started collecting the data in 1981.
Inventory levels tightened significantly in December, with available homes falling 13.5 percent from November to 1.15 million units, equating to a 3.3-month supply.
“Here’s Why”
Unfulfilled Daily Voice headline.
Housing prices going up is bad. Housing prices going down is bad also. Everything is bad.
Its not a "reminder" if the MSM spent the entire year covering it up and acting as if nothing was wrong. I love how the media covers up bad news when a Dem is in office and then when the Dem is out, they report the news as if they had been reporting it all along.
It’s like trying to catch a Falling Knife!!
Summary: High Prices, Inflation & High Interest Rates are bad for real estate.
The article is pathetic.
In my neck of the woods there’s a huge oversupply of overtaxed McMansions, both new and existing.
Even so-cled starter homes that are less expensive are outright dumps.
By the time you get a contractor in, and get a brand new higher assessment for your trouble, its harder than heck to afford the kids to fill your home.
But this is what Deep State wants.
And until NYS secures its elections, Deep State will get what it wants in NYS.
Where are the 30m illegals being housed;-)
Ya think that adds to prices also?-)
“....It’s always something.”
There’s been massive voter fraud in NY since the 1800’s, it would take an Act of God to get rid of it
Tech stocks are getting hammered today with Nvidia down 15%.
It is because some outfit in China came up with AI design which requires less costly chips and less power infra-structure.
What do you think? those 30 million illegals are not starving, they are buying groceries at same store as we are. Big food outfits love illegals because of increased demand. Their lobbyists control politicians.
NYS elections are messed up because NYS has too many moochers.
“outright dumps”
New York State needs to move away from ad valorum taxation so people feel free to fix up their places.
Real property might be assessed on the square root of the square footage of a housing unit for school taxation.
A 900 square foot apartment would pay 3/5 the school property tax of a 2,500 square foot house.
Single family homeowners are subsidizing slumlords.
A few years ago mortgage rates were about 2.5%....today they’re at 7%
Investors can afford to buy properties & rent them out & in a lot of cases they’re probably rented to illegals. In the past, it was generally less expensive to purchase an existing home, but the pandemic, inflation and companies like Blacrock pushed up the price of existing homes, while the price of land, lumber and other building materials has pushed up the price of new homes. Government regulation, stricter building codes, etc. also make new homes more expensive to purchase & the payback time to realize any energy savings is probably longer than the person will own the house.
Unless I want to sell my home ...
“outright dumps”
Property tax credits might be made available in randomly selected areas for say 36 months so entire neighborhoods get turned around. The credits might be 40% of work value for the first 12 months and then going down by 1%, based on inspection approval and contract payment, for up to 70% of the property tax amounts.
Another thing to look at is the Savannah model. Houses on the ring surrounded the renovated area get systematically renovated.
The mortgage interest deduction could be replaced by a 50% tax credit up to $6,000 on the interest paid above 4%.
It would effectively cut a 7% interest rate to 5.5% on mortgaged amounts up to $400,000.
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