VOL 2025 ISSUE 1
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VOL 2025 ISSUE 1
BUILDERSOUTLOOK
PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS : NATIONAL , STATE AND LOCAL HOME BUILDING INDUSTRY NEWS
Existing home sales at nearly 30-year low despite December gains
Despite higher mortgage rates and elevated home prices , existing home sales jumped to a 10-month high in December , marking three monthly gains in annual growth , according to the National Association of Realtors ( NAR ). However , existing home sales end 2024 at 4.06 million , the lowest level since 1995 as the median price reached a record high of $ 407,500 in 2024 . While inventory improves and the Fed continues lowering rates , the market faces headwinds as mortgage rates are expected to stay above 6 % for longer due to an anticipated slower easing pace in 2025 . The prolonged rates may continue to discourage homeowners from trading existing mortgages for new ones with higher rates , keeping supply tight and prices elevated . As such , sales are likely to remain limited in the coming months due to elevated mortgage rates and home prices .
Total existing home sales , including single-family homes , townhomes , condominiums , and co-ops , rose 2.2 % to a seasonally adjusted annual rate of 4.24 million in December , the highest level since February 2024 . On a year-over-year basis , sales were 9.3 % higher than a year ago , the largest annual gain since June 2021 . However , total sales in 2024 fell to 4.06 million , breaking below 2023 ’ s record low of 4.10 million and marking the lowest annual level since 1995 . The Pending Home Sales Index ( PHSI ) is a forward-looking indicator based on signed contracts . The PHSI rose from 77.3 to 79.0 in November due to improved inventory . This marks the highest level since February 2023 . On a year-over-year basis , pending sales were 6.9 % higher than a year ago per National Association of Realtors data .