US existing-home sales fall

NAR’s chief economist Lawrence Yun said the market’s subdued December performance likely marked its bottom before a probable recovery in 2024. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear in the market in upcoming months,” he said.

Max Slyusarchuk, chief executive officer at A&D Mortgage, also underlined the likelihood of a sales uptick by the end of 2024 – although there’ll still be plenty weighing against the market throughout the year.

“While home sales remain flat for now, the trend won’t continue,” he said in a statement following the release of the new NAR data. “In fact, with interest rates expected to ease through 2024, we believe home sales may increase by nearly a million homes a month by the end of the year.

“But while that sounds impressive, a full housing recovery where supply and demand are in balance remains years away.”

Existing-home sales retreated by 1.0% in December. Among the four major U.S. regions, sales slipped in the Midwest and South, rose in the West and were unchanged in the Northeast. https://t.co/MRvBauOozR

— National Association of REALTORS® (@nardotrealtor) January 19, 2024

Affordability continues to challenge US homebuyers

For Selma Hepp, CoreLogic’s chief economist, housing affordability will remain a central concern throughout a projected market revival in 2024.