While home sales across the national dipped to their lowest level in nearly three decades, the median U.S. home-sales price in 2023 reached a record high, according to the National Association of Realtors.
The 4.09 million home sales in 2023 totaled just under 4.1 million, the lowest since 1995, as the market contended with rising affordability and inventory issues.
That lack of inventory also had the impact of keeping sales prices up, with the median price for all existing homes that sold nationally totaling $389,000 for the year, according to the real-estate trade group.
Total housing inventory registered at the end of December was 1 million units, down 11.5% from November but up 4.2% from one year ago (960,000). Unsold inventory sits at a 3.2-month supply at the current sales pace, down from 3.5 months in November but up from 2.9 months in December 2022.
“The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” said NAR chief economist Lawrence Yun. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.”
The median existing-home price for all housing types that sold in December was $382,600, an increase of 4.4 percent from December 2022 ($366,500). All four U.S. regions posted price increases.
The median existing single-family home price was $387,000 in December, up 4 percent from December 2022. The median existing condo price was $343,800 in December, up 8.2 percent from the previous year.
“Despite sluggish home sales, 85 million home-owning households enjoyed further gains in housing wealth [in 2023],” Yun added.
According to the monthly Realtors’ Confidence Index, properties typically remained on the market for 29 days in December, up from 25 days in November and 26 days in December 2022. Fifty-six percent of homes sold in December were on the market for less than a month.
First-time buyers were responsible for 29 percent of sales in December, down from 31 percent in November 2023 and December 2022. NAR’s 2023 Profile of Home Buyers and Sellers – released in November 20234 – found that the annual share of first-time buyers was 32 percent.
All-cash sales accounted for 29 percent of transactions in December, up from 27 percent in November 2023 and 28 percent in December 2022.
Individual investors or second-home buyers, who make up many cash sales, purchased 16 percent of homes in December, down from 18 percent in November and identical to one year ago.
Distressed sales – foreclosures and short sales – represented 2 percent of sales in December, virtually unchanged from last month and the previous year.
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