Existing-home sales were higher in December, but still came in at their lowest levels since 1995. Economists see positive trends that could continue into 2025.

U.S. existing home sales increased to a 10-month high in December, but further gains are likely to be limited by elevated mortgage rates and house prices, which are keeping many prospective buyers on the sidelines.

Existing home sales declined in 2024 to the lowest level since 1995, while median home prices rose to a record high as elevated mortgage rates confound the market.

While increasing across the nation in December, existing home sales at the end of 2024 were at their overall lowest level in nearly three decades.

Higher mortgages rates and record home prices kept sales subdued for the second straight year.