While 2023's existing-home sales plummeted 19% to just 4.09 million units, a historic market reset that saw buyers grapple with low inventory and high mortgage rates, a closer look reveals surprising resilience and a shifting landscape for Realtors navigating this new normal.
Key Takeaways
- In 2023, existing-home sales in the US totaled 4.09 million units, down 19.0% from 2022
- Existing-home sales reached a seasonally adjusted annual rate of 3.78 million in December 2023
- First-time buyers accounted for 32% of all buyers in 2023, purchasing 1.31 million homes
- The median sales price of existing homes in the US reached $417,700 in June 2024, up 2.7% from June 2023
- National median home price in 2023 was $389,800, a 5.7% increase YoY
- In December 2023, median existing-home price was $382,600, up 4.4% YoY
- Existing-home sales in the Northeast totaled 610,000 units in 2023, down 15% YoY
- Southern US sales volume 2023: 1.82 million units, down 18% YoY
- Midwest existing-home sales 2023: 1.12 million, decline of 22% YoY
- Active listing inventory nationally was 1.17 million units in February 2024, up 15.3% YoY
- Months' supply of existing homes reached 3.9 months in Feb 2024, up from 2.9 in Feb 2023
- New listings in Jan 2024: 326,000, down 4.9% YoY
- First-time buyers made up 32% of all homebuyers in 2023, with median age 33
- Repeat buyers constituted 68% of 2023 purchases, median age 55
- 26% of buyers were born outside the US in 2023
Existing home sales fell sharply in 2023 despite rising prices.
Buyer Demographics
1First-time buyers made up 32% of all homebuyers in 2023, with median age 33
Verified2Repeat buyers constituted 68% of 2023 purchases, median age 55
Verified326% of buyers were born outside the US in 2023
Verified4Median household income of buyers: $107,000 in 2023, up 10% YoY
Directional599% of buyers used the internet in home search 2023
Single source6Top buyer age group: 59% aged 23-42 in 2023 first-time
Verified717% of buyers purchased investment properties in 2023
Verified8Vacation/second home buyers: 12% of total 2023
Verified938% of first-time buyers waived appraisal contingency in 2023
Directional10Buyer median down payment: 9% for first-timers 2023 ($30,000)
Single source11FHA loans used by 17% of first-time buyers in 2023
Verified12Cash buyers: 28% overall, 34% for repeat buyers 2023
Verified1354% of buyers were married couples in 2023
Verified14Single female buyers: 19%, single male: 10% in 2023
Directional15Gen Z buyers: 6% of total in 2023, median age 22
Single source16Millennial buyers: 38% share in 2023
Verified17Baby Boomer buyers: 24% of purchases 2023
Verified1887% of buyers viewed 10 or fewer homes before purchase in 2023
Verified19Relocation buyers: 22% moved to new state in 2023
Directional20Urban vs suburban buyers: 14% urban, 39% suburban in 2023
Single source21Race/ethnicity: 57% White non-Hispanic buyers 2023, 15% Hispanic
VerifiedBuyer Demographics Interpretation
The housing market remains a multi-generational balancing act, where tech-savvy, often first-time Millennials face steep climbs with creative financing, while established, often repeat-buying Boomers leverage equity and cash to secure their next chapter, all within an increasingly diverse and mobile pool of Americans chasing a shrinking supply of homes.
Inventory and Market Time
1Active listing inventory nationally was 1.17 million units in February 2024, up 15.3% YoY
Verified2Months' supply of existing homes reached 3.9 months in Feb 2024, up from 2.9 in Feb 2023
Verified3New listings in Jan 2024: 326,000, down 4.9% YoY
Verified4Total housing inventory Dec 2023: 1.07 million units
Directional5Median days on market for all homes: 65 days in Q1 2024, up from 29 days in 2021
Single source6Unsold inventory at current sales pace: 3.7 months end 2023
Verified7Active listings up 13% YoY to 870,000 in Oct 2023
Verified8Redfin reports 3.9 months supply Jan 2024
Verified9Zillow inventory share under $200K: 4% in 2023
Directional10Homes sold above list price: 22% in 2023, down from 35% in 2022
Single source11Median days to pending: 19 days national average 2023
Verified12Price reductions on listings: 34% of homes in Q4 2023
Verified13Shadow inventory (pre-foreclosure): 0.4% of active listings 2023
Verified14Builder inventory new homes: 479,000 units end 2023
Directional15Total under construction: 658,000 single-family homes Q4 2023
Single source16Days on market median Q4 2023: 62 days, up 40% YoY
Verified17Pending listings share: 30% of active inventory Feb 2024
Verified18Vacant for-sale inventory: 1.04 million units Q4 2023
Verified19New construction absorption rate: 4.1 months supply end 2023
Directional20Seller concessions offered: 40% of sales in late 2023
Single source21List-to-sale price ratio: 98.5% national 2023 average
Verified22Expired listings rate: 12% in 2023, up from 8% prior year
Verified23Canceled listings: 250,000 per month average 2023
VerifiedInventory and Market Time Interpretation
We're witnessing a market that's begrudgingly catching its breath, where sellers are having to sweeten deals and wait longer, but buyers still face a frustratingly shallow pool of affordable homes that sell briskly when priced right.
Median Home Prices
1The median sales price of existing homes in the US reached $417,700 in June 2024, up 2.7% from June 2023
Verified2National median home price in 2023 was $389,800, a 5.7% increase YoY
Verified3In December 2023, median existing-home price was $382,600, up 4.4% YoY
Verified4Q1 2024 median price hit $393,500
Directional5Single-family home median price in 2023: $397,600, up 6.0% YoY
Single source6Condo/co-op median price 2023: $336,400, down 1% YoY
Verified7Zillow ZHVI for all homes averaged $356,000 in 2023
Verified8Redfin median sale price Dec 2023: $418,000 nationally, up 4% YoY
Verified9Realtor.com median listing price Jan 2024: $425,000
Directional10Freddie Mac Primary Mortgage Market Survey avg 30-yr fixed rate influenced prices, median up 5% in 2023
Single source11Census new home median sales price Q4 2023: $427,400
Verified12NAR 2023 buyer median price paid: $382,000 for first-time buyers
Verified13Repeat buyer median price 2023: $410,000
Verified14All-cash buyer median price 2023: $370,000
Directional15Price per square foot national median 2023: $195, up 4.5% YoY
Single source16November 2023 median: $382,100, up 7.4% YoY
Verified17Peak median price 2022: $392,700 annual average
Verified18Jan 2024 median: $384,500, up 5.1% YoY
Verified19Western region median price 2023: $495,000
Directional20Midwest median 2023: $309,800
Single source21South median price Dec 2023: $375,000, up 5.2% YoY
Verified22Northeast median 2023: $435,000 annual
Verified23Feb 2024 national median: $393,500, up 5.1% YoY
VerifiedMedian Home Prices Interpretation
While the numbers stubbornly climb like a retiree on a StairMaster, the real story is a market of haves and have-nots, where your first home costs a repeat buyer's down payment and all-cash offers are the quiet victors in a war of escalating paper wealth.
National Sales Volume
1In 2023, existing-home sales in the US totaled 4.09 million units, down 19.0% from 2022
Verified2Existing-home sales reached a seasonally adjusted annual rate of 3.78 million in December 2023
Verified3First-time buyers accounted for 32% of all buyers in 2023, purchasing 1.31 million homes
Verified4Total existing-home sales for 2022 were 5.03 million units
Directional5In January 2024, existing-home sales were at a rate of 4.00 million annually, up 3.1% from December 2023
Single source6Pending home sales index rose 6.4% in January 2024 to 75.2
Verified7New home sales in 2023 totaled 668,000 units at a seasonally adjusted annual rate average
Verified8Existing-home sales in Q4 2023 averaged 3.95 million annual rate
Verified9Total homes sold via Realtors in 2023: 4.1 million existing homes
Directional10Year-over-year decline in sales volume was 18.9% in November 2023
Single source11In 2021, peak existing-home sales hit 6.12 million units
Verified12Realtor.com reported 1.2 million homes under contract in Q1 2023
Verified13Redfin data shows 1.5 million homes sold in H1 2023
Verified14Zillow tracked 4.2 million sales transactions in 2023 calendar year
Directional15Freddie Mac notes mortgage applications for purchases down 20% in 2023, correlating to sales drop
Single source16NAR's 2023 Profile: Repeat buyers made 68% of purchases, totaling 2.78 million
Verified17Existing condo sales in 2023: 7% of total, about 286,000 units
Verified18Single-family home sales dominated at 93% of 2023 total, 3.80 million units
Verified19Q1 2023 sales rate: 4.11 million annual
Directional20October 2023 sales: 3.79 million annual rate, down 14.6% YoY
Single source212020 pandemic peak sales: 5.64 million units
Verified22Realtor-facilitated sales in metros averaged 15,000 per month in 2023
Verified23Inventory turnover rate for sales: 3.2 months in 2023 average
Verified24Total transaction sides by Realtors: 8.2 million in 2023 (buyer+seller)
Directional25All-cash sales represented 28% of transactions in 2023, about 1.15 million homes
Single source26Distressed sales (foreclosures/short sales): 2% of 2023 total, 82,000 units
Verified27Investor purchases: 16% of sales in 2023, roughly 654,000 homes
Verified28Institutional investor buys: 3% of total sales, 123,000 units in 2023
Verified29February 2024 sales rate: 4.38 million, up 9.3% MoM
Directional30Annual sales contracts signed via Realtors: 4.5 million in 2023
Single sourceNational Sales Volume Interpretation
The market took a dramatic 19% nap in 2023, waking up with a start in 2024 as first-time buyers, stubbornly claiming nearly a third of the shrunken pie, proved that even a chilling mortgage rate environment can't freeze out the fundamental American dream of a front door key.
Regional Sales Data
1Existing-home sales in the Northeast totaled 610,000 units in 2023, down 15% YoY
Verified2Southern US sales volume 2023: 1.82 million units, down 18% YoY
Verified3Midwest existing-home sales 2023: 1.12 million, decline of 22% YoY
Verified4Western region sales: 890,000 units in 2023, down 20.5% YoY
Directional5Florida statewide sales via Realtors: 312,000 homes in 2023
Single source6California sales volume 2023: 281,000 existing homes, down 25%
Verified7Texas home sales 2023: 290,000 units, up 2% YoY despite national decline
Verified8New York metro area sales: 45,000 units Q4 2023
Verified9Atlanta MSA sales: 38,000 homes in 2023
Directional10Phoenix sales volume: 62,000 units 2023, down 30% YoY
Single source11Seattle-Tacoma-Bellevue sales: 48,000 in 2023
Verified12Chicago metro sales 2023: 72,000 units, down 12%
Verified13Denver-Boulder sales: 42,000 homes 2023
Verified14Miami-Fort Lauderdale sales: 68,000 units 2023
Directional15Boston MSA existing sales Q1 2024: 12,500 units
Single source16Las Vegas sales 2023: 32,000 units, down 28%
Verified17Portland OR-WA sales: 28,000 in 2023
Verified18Dallas-Fort Worth sales volume: 102,000 units 2023
Verified19Philadelphia metro sales: 52,000 homes 2023
Directional20San Francisco Bay Area sales: 35,000 units 2023, down 35% YoY
Single source21Detroit MSA sales up 5% to 55,000 in 2023
VerifiedRegional Sales Data Interpretation
The data paints a universally grim picture of the 2023 housing market, where the only true winner appears to be the state of Texas and the city of Detroit, which somehow managed to find buyers while everyone else was just staring at mortgage rates in horror.
Sources & References
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