January 2025 National Market Insights Report

“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates. 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…Job and wage gains, along with increased inventory, are positively impacting the market.”  NAR chief economist Lawrence Yun, 1/24/25

• National existing-home sales in December 2024 rose 4.4% from November and almost 11% from December 2023, a strong finish to the year, but comparing 2024 to 2023, annual sales volume was slightly down. Monthly median house and condo/co-op sales prices were up 6.1% and 4.5% respectively, and for the full year, 2024 median sales prices rose 4.6% and 3.7% over 2023.

• In the typical seasonal trend, the number of new listings coming on market and the number of homes going into contract in December hit their lowest monthly counts of the year, though closed sales – mostly reflecting accepted-offer activity in November – rose as noted in the paragraph above. Listing and sales activity can be expected to accelerate rapidly in coming months, with the market heating up moving into the spring selling season.

• 53% of December home sales sold in less than 1 month; 16% of sales closed for over asking price.  

• The weekly average mortgage interest rate briefly rose above 7% in mid-January, before subsequently falling slightly below that threshold.

In its forecast for 2025, the National Association of Realtors estimated that existing (resale) home sales will rise 7% to 12% over 2024, new-construction home sales will increase 11%, the median home sales price will climb 2%, and the mortgage interest rate will average around 6%.

“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates. 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…Job and wage gains, along with increased inventory, are positively impacting the market.”  NAR chief economist Lawrence Yun, 1/24/25

• National existing-home sales in December 2024 rose 4.4% from November and almost 11% from December 2023, a strong finish to the year, but comparing 2024 to 2023, annual sales volume was slightly down. Monthly median house and condo/co-op sales prices were up 6.1% and 4.5% respectively, and for the full year, 2024 median sales prices rose 4.6% and 3.7% over 2023.

• In the typical seasonal trend, the number of new listings coming on market and the number of homes going into contract in December hit their lowest monthly counts of the year, though closed sales – mostly reflecting accepted-offer activity in November – rose as noted in the paragraph above. Listing and sales activity can be expected to accelerate rapidly in coming months, with the market heating up moving into the spring selling season.

• 53% of December home sales sold in less than 1 month; 16% of sales closed for over asking price.  

• The weekly average mortgage interest rate briefly rose above 7% in mid-January, before subsequently falling slightly below that threshold.

In its forecast for 2025, the National Association of Realtors estimated that existing (resale) home sales will rise 7% to 12% over 2024, new-construction home sales will increase 11%, the median home sales price will climb 2%, and the mortgage interest rate will average around 6%.

Compass National Market Insights Flipbook