2024 Housing Market Year In Review: A Market Ruled by Mortgage Rates

18 housing trends that defined the year, including record mortgage rates, depleted inventory, and dwindling home sales

2023 was a difficult year for the housing market. It started with a continuation of negative trends from the end of 2022 and turned into the least affordable year for home buying on record. 

Seasonal trends buckled. The spring homebuying season never happened, housing inventory remained historically low throughout the year, and sales plummeted.

The market was so difficult that more than half of recent homebuyers believed buying a home was more stressful than dating, and nearly 40% of homebuyers under 30 received money from their family to afford a down payment. 

So what happened? In short: Record mortgage rates, high inflation, and persistently high housing and rental prices. But there was a lot more to it as well. 

Below are trends, data points, and visuals that defined the 2023 housing market. 

All data is aggregated from January through November 2023, and does not include December unless otherwise stated. December data is through the 15th of the month. All data is from Redfin, FRED, NAR, and/or public records. For questions about metrics, read our metrics definitions page.

1. Home prices rose to near-record highs

The U.S. median sale price peaked at $425,000 in June, just below last year’s record high of $433,000. However, when averaging over the entire year, 2023’s average median sale price was higher than any previous year in history, rising from $407,000 in 2022 to $409,000.

“The unusual combination of low supply and low demand caused home prices to remain elevated throughout the year, which was bad news for pretty much everyone,” laments Daryl Fairweather, Redfin Senior Chief Economist. “The market was extraordinary; it felt hot, even though very few homes changed hands.”