U.S. Home Sales Surge Amid Market Challenges

U.S. existing home sales hit a 10-month high in December, driven by transactions for expensive houses. However, elevated mortgage rates and house prices pose challenges, leading to the lowest home sales in three decades for 2024. Market outlook remains cautious with economic and inflation concerns.

In December, U.S. existing home sales reached a 10-month peak, largely due to transactions involving higher-priced houses. Despite this rise, challenges such as elevated mortgage rates and record-high house prices persist, discouraging many potential buyers.

Economists remain cautious, projecting limited growth in housing demand with mortgage rates close to 7%. The National Association of Realtors reported sales at a seasonally adjusted rate of 4.24 million units, marking a 2.2% increase from the previous month.

Economic factors, including inflation and housing affordability, are pivotal to the market's future as housing supply struggles to match pre-pandemic levels. The Federal Reserve's cautious stance on interest rate cuts underscores these challenges.

(With inputs from agencies.)