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
- 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
- Median household income of buyers: $107,000 in 2023, up 10% YoY
- 99% of buyers used the internet in home search 2023
- Top buyer age group: 59% aged 23-42 in 2023 first-time
- 17% of buyers purchased investment properties in 2023
- Vacation/second home buyers: 12% of total 2023
- 38% of first-time buyers waived appraisal contingency in 2023
- Buyer median down payment: 9% for first-timers 2023 ($30,000)
- FHA loans used by 17% of first-time buyers in 2023
- Cash buyers: 28% overall, 34% for repeat buyers 2023
- 54% of buyers were married couples in 2023
- Single female buyers: 19%, single male: 10% in 2023
- Gen Z buyers: 6% of total in 2023, median age 22
- Millennial buyers: 38% share in 2023
- Baby Boomer buyers: 24% of purchases 2023
- 87% of buyers viewed 10 or fewer homes before purchase in 2023
- Relocation buyers: 22% moved to new state in 2023
- Urban vs suburban buyers: 14% urban, 39% suburban in 2023
- Race/ethnicity: 57% White non-Hispanic buyers 2023, 15% Hispanic
Buyer 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
- 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
- Total housing inventory Dec 2023: 1.07 million units
- Median days on market for all homes: 65 days in Q1 2024, up from 29 days in 2021
- Unsold inventory at current sales pace: 3.7 months end 2023
- Active listings up 13% YoY to 870,000 in Oct 2023
- Redfin reports 3.9 months supply Jan 2024
- Zillow inventory share under $200K: 4% in 2023
- Homes sold above list price: 22% in 2023, down from 35% in 2022
- Median days to pending: 19 days national average 2023
- Price reductions on listings: 34% of homes in Q4 2023
- Shadow inventory (pre-foreclosure): 0.4% of active listings 2023
- Builder inventory new homes: 479,000 units end 2023
- Total under construction: 658,000 single-family homes Q4 2023
- Days on market median Q4 2023: 62 days, up 40% YoY
- Pending listings share: 30% of active inventory Feb 2024
- Vacant for-sale inventory: 1.04 million units Q4 2023
- New construction absorption rate: 4.1 months supply end 2023
- Seller concessions offered: 40% of sales in late 2023
- List-to-sale price ratio: 98.5% national 2023 average
- Expired listings rate: 12% in 2023, up from 8% prior year
- Canceled listings: 250,000 per month average 2023
Inventory 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
- 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
- Q1 2024 median price hit $393,500
- Single-family home median price in 2023: $397,600, up 6.0% YoY
- Condo/co-op median price 2023: $336,400, down 1% YoY
- Zillow ZHVI for all homes averaged $356,000 in 2023
- Redfin median sale price Dec 2023: $418,000 nationally, up 4% YoY
- Realtor.com median listing price Jan 2024: $425,000
- Freddie Mac Primary Mortgage Market Survey avg 30-yr fixed rate influenced prices, median up 5% in 2023
- Census new home median sales price Q4 2023: $427,400
- NAR 2023 buyer median price paid: $382,000 for first-time buyers
- Repeat buyer median price 2023: $410,000
- All-cash buyer median price 2023: $370,000
- Price per square foot national median 2023: $195, up 4.5% YoY
- November 2023 median: $382,100, up 7.4% YoY
- Peak median price 2022: $392,700 annual average
- Jan 2024 median: $384,500, up 5.1% YoY
- Western region median price 2023: $495,000
- Midwest median 2023: $309,800
- South median price Dec 2023: $375,000, up 5.2% YoY
- Northeast median 2023: $435,000 annual
- Feb 2024 national median: $393,500, up 5.1% YoY
Median 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
- 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
- Total existing-home sales for 2022 were 5.03 million units
- In January 2024, existing-home sales were at a rate of 4.00 million annually, up 3.1% from December 2023
- Pending home sales index rose 6.4% in January 2024 to 75.2
- New home sales in 2023 totaled 668,000 units at a seasonally adjusted annual rate average
- Existing-home sales in Q4 2023 averaged 3.95 million annual rate
- Total homes sold via Realtors in 2023: 4.1 million existing homes
- Year-over-year decline in sales volume was 18.9% in November 2023
- In 2021, peak existing-home sales hit 6.12 million units
- Realtor.com reported 1.2 million homes under contract in Q1 2023
- Redfin data shows 1.5 million homes sold in H1 2023
- Zillow tracked 4.2 million sales transactions in 2023 calendar year
- Freddie Mac notes mortgage applications for purchases down 20% in 2023, correlating to sales drop
- NAR's 2023 Profile: Repeat buyers made 68% of purchases, totaling 2.78 million
- Existing condo sales in 2023: 7% of total, about 286,000 units
- Single-family home sales dominated at 93% of 2023 total, 3.80 million units
- Q1 2023 sales rate: 4.11 million annual
- October 2023 sales: 3.79 million annual rate, down 14.6% YoY
- 2020 pandemic peak sales: 5.64 million units
- Realtor-facilitated sales in metros averaged 15,000 per month in 2023
- Inventory turnover rate for sales: 3.2 months in 2023 average
- Total transaction sides by Realtors: 8.2 million in 2023 (buyer+seller)
- All-cash sales represented 28% of transactions in 2023, about 1.15 million homes
- Distressed sales (foreclosures/short sales): 2% of 2023 total, 82,000 units
- Investor purchases: 16% of sales in 2023, roughly 654,000 homes
- Institutional investor buys: 3% of total sales, 123,000 units in 2023
- February 2024 sales rate: 4.38 million, up 9.3% MoM
- Annual sales contracts signed via Realtors: 4.5 million in 2023
National 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
- 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
- Western region sales: 890,000 units in 2023, down 20.5% YoY
- Florida statewide sales via Realtors: 312,000 homes in 2023
- California sales volume 2023: 281,000 existing homes, down 25%
- Texas home sales 2023: 290,000 units, up 2% YoY despite national decline
- New York metro area sales: 45,000 units Q4 2023
- Atlanta MSA sales: 38,000 homes in 2023
- Phoenix sales volume: 62,000 units 2023, down 30% YoY
- Seattle-Tacoma-Bellevue sales: 48,000 in 2023
- Chicago metro sales 2023: 72,000 units, down 12%
- Denver-Boulder sales: 42,000 homes 2023
- Miami-Fort Lauderdale sales: 68,000 units 2023
- Boston MSA existing sales Q1 2024: 12,500 units
- Las Vegas sales 2023: 32,000 units, down 28%
- Portland OR-WA sales: 28,000 in 2023
- Dallas-Fort Worth sales volume: 102,000 units 2023
- Philadelphia metro sales: 52,000 homes 2023
- San Francisco Bay Area sales: 35,000 units 2023, down 35% YoY
- Detroit MSA sales up 5% to 55,000 in 2023
Regional 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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