Existing-home sales may have plummeted at the start of the year, but they saw growth year-over-year
Feb. 21, 2025
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Existing-home sales started 2025 on the decline, but grew year-over-year.
Existing-home sales declined at the start of 2025. According to the National Association of Realtors (NAR), sales of existing homes dropped by 4.9% from December to a seasonally adjusted annual rate of 4.08 million in January. However, year-over-year data show that sales actually grew by 2%. This is most likely due to increasing prices and high mortgage rates, according to NAR chief economist Lawrence Yun. And there is the potential for existing-home sales to improve as inventory increases. Total housing inventory at the end of January increased by 3.5% from December 2024 to 1.18 million units. Compared with the same time last year, inventory has also grown by 16.8%.
"More housing supply allows strongly qualified buyers to enter the market," Yun added. "But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners."Read more
