• Existing-home sales rose 2.2% in December to a seasonally adjusted annual rate of 4.24 million, the strongest pace since February 2024 (4.38 million). Sales grew 9.3% from one year ago, the largest year-over-year gain since June 2021 (+23.0%). The median existing-home sales price progressed 6.0% from December 2023 to $404,400, the 18th consecutive month of year-over-year price increases and biggest year-over-year growth since October 2022 (+6.5%).

December saw softer than seasonally expected rent growth across the country, following several months of rent growth returning to its pre-pandemic norm. The typical asking rent for the entire pool of rental properties across the U.S. was $1,965 in December, just 3.4% higher than the year before. Prior to the pandemic, average rent growth was about 4%. The effects of the pandemic boom remain though, as rents now sit 10% above where they would have been if the 4% growth trend had persisted through the past 5 years.

Buyers should expect less competition for homes than in recent years as housing inventory continues to trend closer to long-term norms from before the pandemic. The number of homes on the market nationwide in December was just under 1 million — more than in any December since 2019. The available pool of existing homes is now 25% below 2018–2019 averages for this time of year, far from the 37% shortfall of January 2024 or the record deficit of 51% seen in February 2022. Rising inventory also points to softer price growth ahead.