U.S. Housing Market: Challenges Loom Amid Price and Rate Pressures

U.S. existing home sales reached a 10-month high, but high mortgage rates and house prices keep potential buyers hesitant. Sales increased 2.2% in December, driven by high-value transactions, despite a record median house price of $407,500. Low supply continues to impact affordability and future growth.

The U.S. housing market experienced a notable increase in existing home sales, reaching a 10-month high in December amid challenging conditions. Elevated mortgage rates and soaring house prices continue to deter many potential buyers, dampening overall market optimism.

December's sales were up 2.2%, climbing to a seasonally adjusted annual rate of 4.24 million units, marking the strongest performance since February. This growth was largely fueled by sales in higher price brackets, despite the median house price hitting a record high of $407,500 last year.

While the supply of homes has improved since the pandemic, it remains inadequate. Analysts caution that ongoing affordability issues stemming from rising costs and limited inventory may hinder further gains, with the market's trajectory remaining uncertain for potential homebuyers.

(With inputs from agencies.)