30-Year Low; Can Trump Fix It?

Red graph with downward arrow showing decline.

(TheLastPatriotNews.com) – In a new crisis that will require President Donald Trump’s attention, in 2024, the U.S. housing market hit its lowest point in nearly three decades, marking the smallest number of home sales since 1995.

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Persistently high mortgage rates have priced many Americans out of the housing market, creating a stark reality that reflects the broader economic challenges facing our nation.

As hard-working families bear the burden of inflated costs and limited options, questions remain about whether meaningful changes will occur to alleviate this crisis.

Throughout 2024, existing home sales plummeted to just 4.06 million units sold, a record low not seen since 1995.

With mortgage rates hovering around 7% after peaking at nearly 8% in late 2023, potential buyers face prohibitive monthly costs that continue to stall sales.

The story isn’t just about numbers; it’s about real Americans who find themselves increasingly priced out of achieving the dream of homeownership.

The median national home price climbed to a staggering $407,500 in 2024, driven by high borrowing costs and extremely limited inventory.

This surge has drastically reduced the purchasing power of average citizens, especially as the population increased by over 70 million since 1995.

Despite this growth, the inventory remains at an alarmingly low 1.15 million homes, far below the historical average of 2.25 million, MSN reports.

The imbalance between supply and demand continues to foster a seller’s market that favors high-end transactions.

Homes priced over $500,000 have seen the most significant sales gains since June 2021, while sales of homes under $250,000 declined.

The available inventory supports only a 3.3-month supply, far less than the 4-6 months that indicate a balanced market.

While there was an increase in sales in December by 2.2% from the previous month, and an annual 9.3% increase compared to the previous year, such minor upticks do little to alleviate the overarching issues.

December also marked the 18th consecutive month that median home sales prices increased, stabilizing at $404,000.

Although first-time buyers accounted for 31% of home sales that month, they collectively only represented 24% of annual sales, well below the historic norm of 40%.

The impacts reach all corners of the country, with the National Association of Realtors reporting sales growth and rising prices across all four analyzed regions.

These dynamics underscore the pressing need for economic adjustments, particularly in terms of interest rates, to create a more conducive environment for potential buyers.

The pathway to homeownership remains fraught with obstacles, demanding decisive actions to bring about long-needed change.

Despite the bleak picture, there’s a glimmer of hope as analysts and stakeholders look to possible interest rate changes in 2025 to stimulate the market.

The hope is to bring balance back to the market and make the dream of owning a home attainable once more for everyday Americans.