Existing-home sales in the U.S. dropped in 2023, with the West, Midwest, South and Northeast all seeing year-over-year drops, according to the National Association of Realtors.
Sales of existing homes hit 4.09 million in 2023, the lowest level since 1995. However, the median price was at a record high of $389,800. In the final month of the year, the Midwest and South saw sales declines, the West saw an increase and the Northeast held steady.
“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.”
Yun noted the fast spike in home prices over the past three years is unsustainable and that “economic and income growth and, most importantly, a steady buildup of home construction” are needed to make it possible for today’s renters to ultimately purchase homes.
