T
he number of homes for sale in the US increased by 22% in December compared to the previous year, marking the 14th consecutive month of growth. However, seasonal trends caused inventory levels to drop to their lowest point since June. Total unsold homes, including pending sales, rose by 17.5% year-over-year, a slower pace than November's 22.5%.

    The median list price decreased by 1.8% year-over-year to $402,502, while the price per square foot increased by 1.3%. This reflects a growing share of smaller, more affordable homes in the market. Compared to December 2019, list prices have risen by 34.2%, and the price per square foot has increased by 49.5%.

    Homes spent an average of 70 days on the market in December, nine days longer than last year and eight days longer than November. Despite this slowdown, homes are still selling eight days faster than the pre-pandemic average from 2017 to 2019.

    Active inventory grew across all regions, with increases of 26.7% in the South, 23.7% in the West, 15.2% in the Midwest, and 6.9% in the Northeast. Only 16 metros had higher inventory levels than pre-pandemic, led by Memphis, Austin, and Orlando.

    Price reductions remained stable at 12.9%, a slight increase from last year. Higher mortgage rates reduced homebuyer power, slowing market activity. Modest growth in home sales (1.5%) is expected in 2025 as rates stabilize.

    Listing prices rose slightly in the Midwest and Northeast but declined in the West and South. The largest metro-level price increases were seen in Cleveland, Milwaukee, and Detroit. Since 2019, Hartford and New York have seen the highest price-per-square-foot growth, while San Francisco and San Jose lagged.

    Homes in the South and West spent additional days on the market compared to last year, while the Midwest and Northeast saw smaller increases. Nationally, 46 of the 50 largest metros experienced longer market times compared to last year, with the biggest increases in Nashville, Orlando, and Rochester.