The 2024 Housing Market: What Low Sales Mean for Buyers and Sellers

by Jeff Hernandez

The U.S. housing market has experienced its lowest sales levels in decades, with only 4.06 million homes sold in 2024—the lowest since 1995.

Despite this decline, home prices have hit record highs, reaching a median of $407,500, making affordability a significant challenge for many buyers.

Let’s explore what’s driving these trends and what they mean for luxury buyers and sellers in Scottsdale, Paradise Valley, and Arcadia.

Why Are Home Sales at Historic Lows?

One of the biggest factors behind the slowdown is high mortgage rates.

Even though the Federal Reserve made three rate cuts in 2024, the 30-year fixed mortgage rate has remained near 7%, discouraging current homeowners from selling and buyers from entering the market.

This "lock-in effect" has kept inventory tight and prices high.

What Does Limited Inventory Mean for Buyers?

Nationally, total housing inventory at the end of 2024 stood at 1.15 million units, up 16% from 2023 but still far below what experts consider a healthy market.

With fewer homes available, competition remains fierce, especially in desirable luxury markets like Scottsdale and Paradise Valley.

Pro tip: Buyers should be prepared with strong offers and work with an experienced Realtor® to uncover off-market opportunities.

What’s Next for Sellers in 2025?

If you’re considering selling your luxury home, now may be the right time.

With inventory still low and demand for high-end homes steady, sellers have the advantage of securing strong offers—especially if their homes offer desirable amenities such as privacy, modern upgrades, and resort-style living.

Looking Ahead: Will Affordability Improve?

Experts predict that 2025 will bring more interest rate cuts, but affordability challenges may persist due to cautious homebuilders and a persistent supply shortage.

For those looking to make a move, timing, and market strategy will be critical in navigating these evolving conditions.

Ready to Make a Move?

Whether you’re buying or selling in the Phoenix metro area, I’m here to provide expert insights and personalized strategies to help you achieve your real estate goals.📧 Email: jeff@conniecollagroup.com
📞 Phone: +1 (602) 550-1114
🌐 Website: bestscottsdaleagent.com